MercoPress. South Atlantic News Agency

Argentina's Lower House greenlights Milei's IMF emergency decree

Most lawmakers “understood the mandate of the ballot boxes,” Casa Rosada said after the outcome

Argentina's Lower House Wednesday gave its nod to President Javier Milei's Emergency Decree (DNU) clearing the way for further borrowing from the International Monetary Fund (IMF) to reinforce Central Bank reserves and manage debt by 129 votes in favor, 108 against, and 6 abstentions with endorsements from the ruling La Libertad Avanza (LLA) as well as other parties, such as PRO, UCR, Coalición Cívica, Innovación Federal, Producción y Trabajo, and a group of Encuentro Federal lawmakers. Opposition came primarily from the Peronist Unión por la Patria (UxP), leftwing groups, and other minor factions.

In celebration, the Office of the President issued a statement saying that “President Milei thanks the 129 deputies, belonging to the great majority of the political blocs, who understood the mandate of the ballot boxes and gave a message to our creditors that shows maturity and greatness: the fight against inflation is a State policy in our country.”

“This agreement will guarantee a public credit operation for the National Treasury to cancel existing debt with the Central Bank and implies a reduction of the total public debt,” the document further noted.

“Argentines made an enormous effort to achieve monetary, financial, and macroeconomic stability, and the reorganization of the Central Bank is one more step to consolidate this process,” it went on.

“Stability is the basis for a future where the purchasing power of wages is not eroded by inflation, and where companies can plan for the long term without fear of economic shocks,” Casa Rosada added.

“The government will not rest for a minute until the disinflation process is definitive and the liberation of exchange restrictions is a reality because that is what we have been elected to do,” it also mentioned, as DNUs need the approval of either House of Congress irrespective of the other's opinion to be valid.

To add to the Government's victory, the traditional retirees' march was attended by a large number of self-convened citizens who supported the senior citizens' claim for better wages and medical assistance. Amid tight security measures outside Congress, the event went on without major incidents, unlike the previous week, when over 100 people were arrested and dozens were injured, including freelance photojournalist Pablo Grillo, who has been hospitalized in Intensive Care.

Grillo's father told reporters Wednesday that his son had opened his eyes and moved his hands at doctors' request. While his condition remains delicate, this progress raises hopes for reducing his dependence on a respirator.

In this scenario, Milei had been forced to cancel a trip to Israel this coming weekend.