In a speech at the Legislative Assembly 2025, President Javier Milei announced economic measures highlighting the agreement with the International Monetary Fund (IMF). Milei stated that this agreement, expected to be finalized in the coming weeks, will go through Congress, as required by law. The president pointed out that the funds obtained will be used to pay off debt with the Central Bank of the Argentine Republic (BCRA), without changing the country's gross debt. The aim is to obtain around $10 billion additional.
In his speech, Milei emphasized the importance of addressing the issue of the fiscal deficit and indebtedness that has persisted for decades. He noted that, historically, Argentine governments opted for borrowing instead of addressing the fiscal problem. Milei urged lawmakers to approve the agreement with the IMF, stressing the need to resolve the financing issue.
For its part, the Government considered the possibility of avoiding Congress approval arguing that it would not increase the debt. However, economic experts warned that owing money to the IMF is different from owing it to the BCRA, as defaulting on the international organization could lead to serious debt problems for the country.
Regarding how the increase in debt will be addressed, the President announced that the funds to pay it off will come from a greater fiscal adjustment through cuts in the public sector. Milei highlighted that during his first year in office, a strong fiscal adjustment was made, affecting mainly pensions, social plans, salaries, and public investment.
The Government expects to finalize the agreement with the IMF before the end of March, intending for it to be approved in Congress and by the organization's board. This approval in Congress must be managed efficiently to avoid delays that could interfere with the electoral campaign planned for the second half of the year.
