President Javier Milei, along with his cabinet of ministers, decided tonight to send a request to the National Congress for authorization to sign a new Extended Fund Facility Program with the International Monetary Fund (IMF).
According to reports, the agreement with the multilateral organization will establish a ten-year amortization period, with a grace period of four and a half years. Its main objective is to cancel the National Treasury's debts with the Central Bank of the Argentine Republic (BCRA) and with the IMF itself.
According to an urgent decree that will be published in the Official Gazette on Tuesday and will take effect immediately, the program will allow for the cancellation of:
Non-transferable U.S. dollar-denominated notes held by the BCRA, prioritizing those with the nearest maturities.
Obligations related to the Extended Fund Facility Program signed in 2022, whose maturities occur in the next four years.
The official document argues that the measure is essential to strengthen the BCRA's international reserves, ensure macroeconomic stability, and reduce the volatility of financial variables.
Javier Milei, presidente de Argentina.
According to official data, in December 2023, the Central Bank's net reserves were negative at USD 11.2 billion, while by March 6, 2025, under President Javier Milei's administration, they had increased by USD 7.034 billion.
The Executive indicated in the DNU that fiscal adjustment and zero deficit policies contributed to a marked reduction in inflation and poverty.
In that sense, it highlighted that in January 2025, the annual inflation rate fell to 84.5%, while poverty decreased from 54.8% to 38.9% in the first year of administration, according to estimates from the National Council for Social Policy Coordination based on INDEC data.
El decreto de Milei.
Decree Details
According to the urgent decree (DNU), the approval of the agreement is based on the urgency of addressing the deterioration of the Central Bank's balance sheet (BCRA) and alleviating the National Treasury's maturity burden in the coming years.
The text also highlights the importance of advancing in the flexibilization of the foreign exchange market, known as the "cepo," to improve economic efficiency and encourage long-term investment.
The Executive Branch, through the DNU, will delegate to the Ministry of Economy the responsibility of signing the necessary instruments to implement the agreement. It was also indicated that the decree will be sent to the Permanent Bicameral Commission of the National Congress for legislative consideration.
In the decree's recitals, the Government reviewed the results of the economic plan and the objectives of the agreement, mainly focused on strengthening reserves to, in the future, lift the "cepo" and keep inflation under control.
Additionally, the DNU presents an extensive argument against the Guzmán Law, which requires that agreements with the International Monetary Fund be approved by both chambers of Congress.
Javier Milei, presidente de Argentina.
"The volatility of economic variables caused by the uncertainty caused by the low quality of the BCRA's assets prevents following the ordinary legislative process without affecting the success of the stabilization program, which directly impacts the reduction of inflation and poverty," the DNU states.
It also adds: "The severity of the described situation and the need to: (a) immediately solve the situation of the country's monetary authority's assets and (b) cancel debt with the IMF to ensure economic public order, constitute exceptional circumstances that justify the issuance of this measure."
Finally, it concludes: "The imperative requirement for the issuance of this decree arises from the nature of the economic measures involved, which require immediate adoption to avoid the impact they could otherwise have on the current economic scenario."
