IMF welcomes the approval of the ‘omnibus law’, promoted by Milei

The International Monetary Fund (IMF) this Thursday welcomed the approval at the end of April in the Chamber of Deputies of the Argentine Congress of the Law Bases and Starting Points for the Freedom of Argentines, known as the ‘omnibus law’, a project star of the Government of Javier Milei.

“We welcome the approval in the Lower House of this key fiscal and structural legislation“, said IMF spokesperson Julie Kozack at a press conference in Washington, who pointed out that the organization will be attentive to the procedures in the Senate of that project, necessary before it comes into force.

The ‘Bases Law and Starting Points for the Freedom of Argentines’, better known as the ‘omnibus law’ or ‘base law’ – as the Executive calls it – is Milei’s star project, a programmatic corpus with measures to deregulate the economy and bring the State to a Lilliputian version.

After failing in its parliamentary process in February, when it was approved in general, but withdrawn by the ruling party due to a certain rejection in the article-by-article vote, this time the initiative achieved full endorsement and was sent for debate in the Senate, where It may have more difficulties for its final approval due to the low representation of La Libertad Avanza, the far-right party led by Milei.

The IMF follows any parliamentary procedure in Argentina very closely because it maintains a debt refinancing program with that country.

Specifically, in March 2022, the then Government of the Peronist Alberto Fernández (2019-2023) signed an agreement with the IMF to refinance loans for about US$ 45,000 million that the organization had granted to Argentina in 2018, during the Conservative Government. Mauricio Macri (2015-2019).

The agreement includes quarterly reviews on the level of compliance with demanding goals in terms of fiscal discipline, accumulation of monetary reserves and limits on monetary issuance.