After four days of intense negotiations, which were attended by representatives of the International Monetary Fund (IMF), in Buenos Aires, the Economy Minister of the Milei government, Luis Caputo, announced the signing of a new understanding with the international organization. “This is not a new agreement, but one that had fallen due to a lack of achievement of targets,” said Caputo during a press interview on Wednesday night (10). Without saying the names of former president Alberto Fernández and former Economy Minister and former candidate for the Casa Rosada, Sergio Massa, Caputo criticized the previous administration. He suggested that the errors occurred in the last quarter of last year, with the increase in government spending during the presidential campaign.
The announcement of the agreement was made after a day of strong volatility in the financial market, with a new spike in the dollar in the parallel market, called ‘blue’, and the increase in the gap between the official and parallel currency rates. This gap had diminished when Caputo announced the strong devaluation of the peso, a few days after the new government took office.
When asked what the government will do if the government packages sent to the National Congress are not approved, Caputo replied: “If the measures sent to Congress do not pass, we will have to adopt tougher measures and it will be the population that will suffer,” he said. .
This week, one of Milei’s packages, called the Bus Law (with 660 articles) began to be debated in the committees of the Chamber of Deputies. The government’s objective is to approve this law, which deregulates the economy and brings together a series of reforms, by January 31st. Parliamentarians from different parties find the goal difficult, as they will only have 16 working days to analyze and vote on them.