Argentina's Congress approves bill to refinance $45 billion in Macri-era IMF debt
Argentina's Senate approved a bill tonight that authorizes an agreement reached with the International Monetary Fund (IMF) for the refinance of a $45 billion debt.
The bill, passed last Friday by the Lower House by 202 to 37, was approved by the Senate by a similarly lopsided 56 to 13.
The agreement, reached between Argentine Economy Martín Guzmán and IMF staff on January 24, would, if approved by the IMF's board, avoid default on the $45 billion lent from a stand-by credit line to former President Mauricio Macri on the eve of his failed, 2019 re-election campaign.
The record IMF bailout was reportedly granted at the insistence of former U.S. President Donald Trump.
President Alberto Fernández, who strongly backed the agreement, enjoyed a rare bi-partisanship in Congress.
The opposition, center-right Together for Change coalition largely backed the bill - reportedly after intense lobbying by business leaders, who fear a default would derail the country's strong recovery from three years of deep recession.
And while two-thirds of Fernández's Front for All voted in favor, many in the Front's more intransigent wing - including his own Vice President, Cristina Kirchner - opposed it on grounds that it “imposed austerity.”
“Where is the austerity?” the president asked rhetorically during a ceremony to inaugurate subsidized housing earlier today. “With this agreement with the IMF there is no austerity.”
“Austerity is what we would have had if we had fallen into default!” he added. “There we'd have no way out, and no escape.”
“We achieved a radically different agreement from all those that were historically had with the IMF,” Guzmán explained.
“There is no removal of rights from workers or retirees; investment in infrastructure and education is to be expanded. We managed to put the interests of the real economy first.”
Argentina had earlier refinanced $66 billion in privately-held foreign debt - around a third of the total - but remains largely shut out of global credit markets.
At: https://www-eldestapeweb-com.translate.goog/politica/acuerdo-con-el-fmi/martin-guzman-sobre-el-acuerdo-logramos-poner-por-delante-a-los-intereses-de-la-economia-real--202231723440?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp
Argentina's Senate convenes for today's vote on the passage of legislation authorizing an agreement with the IMF for the refinance of a $45 billion debt.
The record bailout, dating from former President Mauricio Macri's failed, 2019 re-election campaign, was reportedly granted at the insistence of former U.S. President Donald Trump.
Unlike past IMF programs, the agreement envisages no labor law deregulation, state layoffs, or changes to public pensions.
Economist Joseph Stiglitz lauded the agreement for “not insisting, as (the IMF) usually does, on austerity - instead providing Argentina with room to continue its economic recovery.”
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It appears past efforts to resolve grotesque problems created by kleptocrats and their backers were hastily entertained and applied just to lower the pressure, with NO thought for the general population at ALL.
It was tremendous reading the serious, well considered explanations given by the President and Economy Minister, and a real surprise to see a civilized response coming from the hard right, and the efforts made by the business community!
Tremendous news, so welcome, peppertree. Thanks for the information. 
It can't be easy to throw away decades of dogma - but they did in this case, for the sake of coming to an arrangement that might actually work.
Of course though, it won't work if Macri or anyone like him gets back into power next year.
They'll be sure to enact (and by decree) currency and financial deregulation - leading to a another cycle of asset dollarization, offshoring, massive foreign borrowing to cover that, and before long another debt crisis.
The "financial bicycle" as it's euphemistically called in Argentina.
If that happens, the refinance deal just agreed to would fall right through - forcing the IMF into another bailout, if only to recover what Trump forced them to lend Macri in the first place.
All this is quite possible - even likely. Because for all his work ethic and good intentions, Fernández is politically clumsy, lacks charisma, and has been unlucky besides.
So short of some unexpected event intervening in his favor, the stage is set for another tragedy, I'm sorry to say.
That said, thanks as always for your detailed and thoughtful reading, Judi. Have a pleasant weekend, and Happy Spring! 
Macri - like his friend Trump - carries a chip on his shoulder the size of Trump tower, and he's been jockeying to get back in the Casa Rosada ever since his defeat.
Much the same way Cheeto has been trying to worm back into the White House.
And either case, as you know, would be a disaster.
But more so even in Argentina's case, given their still very delicate situation stemming from the utter insolvency Macri left behind.
Should he get back in - and he might - the IMF can kiss all the hard work they put into this refinance goodbye (to say nothing of having to deal with a future problem twice the current size, or more).
But we can only hope.
Thanks again, Judi. Happy to hear you have such Springtime loveliness to look forward to in your Greater Kansas City environs; such a beautiful city. 
