The possibility of an agreement between Argentina and the International Monetary Fund accelerated in recent days, and the government decided to send a decree to Congress for it to ratify that negotiation. The program includes about US$ 10 billion in fresh dollars, which according to the government will not increase the country's debt, as they will be used entirely to repay commitments of the National Treasury with the Central Bank.
Experts indicate that if the Fund releases more dollars, Argentina's debt with the organization will increase. The new IMF money will be used to pay off debts with the Central Bank, which, according to President Javier Milei, will not change the debt but rather strengthen the financial institution's balance.
Haroldo Montagu, chief economist at the consulting firm Vectorial, mentioned that if the debt does not increase when receiving a loan from the IMF to settle the Treasury's debts with the BCRA, it would imply an expansion of the international organization's loan. It is expected that with this new agreement, the chances of lifting the currency controls will increase, possibly toward the end of the year.
The government also anticipates a gradual exit from the currency controls, which will require a cushion of dollars to avoid a currency run, preferably after the elections to avoid risks. Regarding the sending of the decree to Parliament to ratify the negotiation with the IMF, constitutional lawyer Félix Lonigro indicated that any agreement that involves taking on debt must be approved by Congress, in accordance with what is established in the Constitution.
