MercoPress. South Atlantic News Agency

CFK lambasts Milei for deal with IMF

The devaluation of the Argentine peso will be before or after the October mid-term elections, CFK wondered

Former Argentine President Cristina Fernández de Kirchner (CFK) was heavily critical of the incumbent Javier Milei's intentions to borrow from the International Monetary Fund (IMF) to keep inflation at bay. She argued that Milei's reliance on the Austrian School of economics has led the Libertarian administration to the current situation and that the solutions intended were harmful to Argentina's interests.

“Hey Milei! IN THE END YOU ENDED UP DOING THE SAME THING AS [former President Mauricio] MACRI,” CFK started by posting on X. “The Austrian School experiment failed you; you are up to your neck because you are short of dollars, and YOU THROW IN THE TOWEL BY ASKING FOR A LOAN FROM THE IMF,” she added.

Che Milei! AL FINAL TERMINASTE HACIENDO LO MISMO QUE MACRI.

Te falló el experimento de la Escuela Austríaca, estás con el agua al cuello porque te faltan dólares y TIRÁS LA TOALLA PIDIÉNDOLE UN PRÉSTAMO AL FMI.

Acabo de leer la nota que publicaste ayer en La Nación donde querés…

— Cristina Kirchner (@CFKArgentina) March 9, 2025

“I just read the note you published yesterday in La Nación where you want to explain the inexplicable: that you are going to ask the IMF for billions of dollars without it generating new debt because with those dollars you are going to pay the Non-Transferable Notes that the Treasury owes the Central Bank. ARE YOU REALLY TELLING US THAT THEY ARE GOING TO GIVE YOU BILLIONS OF DOLLARS AND THAT THE ARGENTINE EXTERNAL DEBT IS NOT GOING TO INCREASE? Gooooood! The same thing Macri did when he said he was going into debt in dollars to pay the deficit in pesos and [current Economy Minister and Finance Minister under Macri, Luis] Toto Caputo ended up asking the IMF for 57 billion dollars,” the opposition leader went on.

CFK also noted that borrowing from the IMF subjected Argentina to foreign legislation and judges and underlined that, during his campaign Milei wanted to close the Central Bank “because it was the biggest thief that existed in Argentina” but now he ends up asking for a loan to “STRENGTHEN” ITS BALANCE SHEET (in upper case).

“STOP LYING TO PEOPLE MILEI… Nobody believes you. IN REALITY, YOU ARE SO DESPERATE BECAUSE YOU ARE SHORT OF DOLLARS that you will end up making a terrible deal for the country's interests,” CFK further stressed.

”The truth is that you realized a while ago that THAT VERSE that you always recite… [that] 'INFLATION IS ALWAYS AND EVERYWHERE A MONETARY PHENOMENON GENERATED BY AN EXCESS OF MONEY SUPPLY' (...) IS FALSE,“ the two-time former head of State wrote.

”THE ONLY RECIPE YOU ARE APPLYING AGAINST INFLATION IS TO KEEP THE PRICE OF THE OFFICIAL DOLLAR UNDER STOCK AND RAFFLE THOUSANDS OF MILLIONS OF DOLLARS TO KEEP THE FINANCIAL ONES AT BAY and avoid the exchange rate gap from skyrocketing and, along with it, the prices. It is very noticeable, Milei,“ she went on.

”What is the IMF going to demand of you with the exchange rate? DEVALUATION BEFORE OR AFTER THE ELECTIONS?“ she wondered.

Caputo confirmed these days that the amount of the loan had already been agreed upon with the IMF, but the specific figures were not disclosed due to confidentiality reasons, although analysts foresee it will be somewhere between US$ 10 and 20 billion. The Minister also said the arrangement will be signed in April ”due to our Congress and IMF's bureaucracy.”