THOUSANDS of protesters marched in Buenos Aires today to denounce the agreement reached between the government of centre-left President Alberto Fernandez and the International Monetary Fund (IMF) on the repayment of a US$44 billion (RM184.16 billion) loan. 

Activists from about 200 movements and associations gathered in front of the Casa Rosada, the pink governmental palace.

The Fernandez government must “remember Argentine history: all the agreements with the IMF since 1983 have brought chaos, ended in (structural) adjustments, hyperinflation and huge social crises,” Myriam Bregman, a deputy from the Left and Workers’ Front (FIT), told AFP.

The government “must prove why it would be different” this time, she added. 

On January 28, the Argentine president announced a new repayment deal with the IMF of a US$44 billion loan granted in 2018 to the government of his predecessor, Mauricio Macri. 

Under the new deal, Argentina has committed to progressively reducing its fiscal deficit from 3% last year to just 0.9% in 2024.

According to the government, the agreement will not affect social spending or economic growth. 

The deal “has nothing to do with the needs of the Argentine people, but with an illegitimate and unpayable debt,” said Vilma Ripoll, another FIT leader. 

The agreement still has to be ratified by Congress, where the ruling coalition has the largest group, but does not have a majority. 

The government hopes to define the terms of the new financing programme before the March 22 deadline, when US$2.85 billion must be repaid by Argentina, which cannot afford it, according to Economy Minister Martin Guzman. 

After three years of recession, the last two linked to the impact of the Covid-19 pandemic, the Argentine economy saw a strong rebound last year, with 10.3% growth for the first 11 months of the year.

But inflation remains very high. In 2021 it was around 50.9%, while it is forecast to be 33% this year. 

Poverty also remains high, affecting 40% of the population. – AFP, February 9, 2022.