Having completed its eighth review of Argentina’s economic performance, as required by the existing $44 billion Extended Fund Facility (EFF) agreement, the International Monetary Fund had nothing but praise for President Javier Milei’s draconian austerity program, and the fact that his economic team achieved a fiscal surplus for the first quarter of the year and reduced inflation—although annual inflation is still running at 300%. The Fund’s team was especially pleased that Milei had surpassed its own economic targets, as the deranged President loves to brag about.
Nonetheless, this “success” only qualifies the government to receive its next tranche of $800 million—which will only be used to pay back the money it owes the Fund. This was a great disappointment to Finance Minister Luis Caputo who had been trying to convince the IMF to hand over as much as $15 billion more. However, the Fund insists that, while Milei is doing an excellent job, he still must show he’s taking steps to protect “the most vulnerable,” especially women and children. Since Milei’s policies are already killing people, denying them medicine and healthcare and gouging wages, the IMF’s concern is hardly believable.
It also demands additional measures—further reducing subsidies, adopting a more “flexible” exchange rate, and removing exchange controls (which even Milei says he can’t do!) “when conditions permit.” The Fund failed to mention that the brunt of the austerity has fallen on retirees whose pensions have declined by 27% since Milei took office.
