Argentina's Senate on Thursday gave final approval to an unpopular austerity budget designed to meet the stiff requirements of a US$ 57.1 billion International Monetary Fund bailout. Approval came as a great relief for battered president Mauricio Macri, but also a double victory, since it opens the way for his reelection aspirations next year.
Lawmakers in Argentina’s lower house of Congress approved on early morning Thursday an unpopular austerity budget designed to meet the stiff requirements of a US$57.1 billion International Monetary Fund bailout.
Protesters opposed to proposed austerity measures clashed with police outside Argentina's Congress on Wednesday as lawmakers discussed next year's budget. Dozens of people threw rocks while police in riot gear responded with rubber bullets and water cannons. Local television said that at least twenty-seven people have been detained but there were no confirmed reports on injuries.
Argentina’s peso strengthened for the third straight day on Friday, driven by optimism that the government would sign a revised financing deal with the International Monetary Fund to include stricter fiscal measures and faster cash disbursements.
Argentine equities and the peso both lost ground on Monday as analysts said intervention in the foreign exchange market by the nation's central bank may prove less successful than originally hoped.
The Argentine Senate passed Wednesday the 2017 National Public Administration Budget bill and approved a reform to the Financial Administration Law, which limits the Executive Branch's discretion and power to reallocate budget items.
Argentina will grow 2.6% in 2012 according to the IMF latest World Economic Outlook, which is below the 3.4% estimated by President Cristina Fernandez administration for this year’s budget.