The International Monetary Fund (IMF) and the World Bank have approved new bailout packages for Argentina. These include a $20 billion (\€18.5 billion\) IMF bailout and a $12 billion package from the World Bank, aimed at supporting President Javier Milei’s efforts to revitalize the struggling economy. Additionally, the Inter-American Development Bank announced a $10 billion deal.
In a televised speech, Milei expressed optimism, stating that the aid would help Argentina’s economy grow “like never before.” He predicted Argentina would experience the strongest economic growth over the next 30 years under these conditions.
IMF Managing Director Kristalina Georgieva praised the approval as a recognition of Milei’s progress in stabilizing the economy. The World Bank noted the packages signify confidence in the government’s plans to stabilize and modernize the economy, potentially attracting private investment and creating jobs.
For Milei, an outspoken libertarian, this marks a significant victory. Since assuming office in December 2023, he has implemented aggressive economic reforms to combat inflation, which resulted in job losses and cuts to government programs. While these measures reduced inflation, they also capped growth and sparked protests in a country where over half the population lives below the poverty line. Following the approvals, Argentina eased its currency controls, allowing citizens to purchase unlimited amounts of US dollars. Since joining the IMF in 1956, Argentina has received 23 bailouts.
— new from dw.com