The Argentine government published this Monday in the Official Bulletin a Decree of Necessity and Urgency (DNU) 179/2025 with the aim of cancelling part of the debt held by the Treasury with the Central Bank of the Argentine Republic (BCRA) and addressing maturity of loans taken with the International Monetary Fund (IMF) under the agreement signed in 2022.
According to the decree, the approved public credit operations will have an amortization period of 10 years, with a grace period of 4 years and 6 months. The funds obtained will be exclusively allocated to cancel transferable letters in dollars held by the BCRA and cover debt payments corresponding to the agreement with the IMF.
The government justified the urgency of this measure to strengthen the financial position of the Central Bank, guarantee macroeconomic stability, reduce currency restrictions, and continue with the policy of reducing inflation.
When taking office in December 2023, the country faced a scenario of stagflation, with no access to external financing and negative international reserves. Since then, a fiscal adjustment and a stabilization policy have been implemented that reduced monthly inflation from 211.4% year-on-year in December 2023 to 2.2% in January 2025.
President Javier Milei signed this decree which establishes a new Extended Fund Facility Program with the IMF, highlighting the reduction of poverty from 54.8% to 38.9% during the first year of management. Despite an increase in the international reserves of the BCRA, it is necessary to clean up its balance to ensure greater financial stability.
The DNU grants powers to the national government to subscribe to the necessary instruments and delegate the execution of the program to the Ministry of Economy, led by Luis Caputo. The decision will be evaluated by the Permanent Bicameral Commission of Congress.
The objective of the agreement with the IMF is to clear short-term maturities, stabilize the economy, and strengthen the position of the Central Bank in a context where macroeconomic and financial challenges persist.
