In Argentina, Javier Milei continues his chainsaw policy, as he himself calls it. To replenish the country’s coffers while reducing the public sector to its simplest expression, he now wants to sell nearly 1,200 real estate assets held by the State. An announcement which comes as the International Monetary Fund (IMF) welcomed this Friday, October 25, the economic policy of the president, elected a little less than a year ago.
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For the first time in 16 years, Argentina recorded a budget surplus in the first half of 2024, welcomes the IMF, which also welcomes a faster than expected decline in inflation.
It should certainly remain very high this year, just below the 140% mark at the end of 2024, estimates the institution. But it would fall to 45% by the end of next year, predicts the IMF.
Signs of a stabilization of the economy which could work in favor of Buenos Aires which wants to obtain a new loan, a new agreement with the IMF. Because Argentina must repay $20 billion in loans that mature next year.
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In return, the International Monetary Fund would like a liberalization of the exchange rate between the dollar and the Argentine peso. This could lead to a devaluation of the national currency, the government fears.
The country will end the year in recession and the social cost of Javier Milei’s reforms is also gigantic: poverty is at its highest in 20 years and affects more than half of the population.
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