Milei to seek Congress support for IMF deal ‘in coming days’

President Javier Milei announced Saturday night that he will seek congressional support for a new programme his government is negotiating with the International Monetary Fund, the most concrete sign yet that talks are advancing toward final stages.

“I want to announce that in the coming days I will request that Congress supports the government in this new agreement with the International Monetary Fund,” Milei said in an annual state of the nation address in the legislature, without providing more specifics. “We hope this Congress adopts the same stance that it had with all the rest, accompanying from your seats and supporting the government in this new agreement.”

Milei also affirmed the future agreement would allow his government to move toward a “more free and efficient” currency policy framework, marking an end to currency and capital controls that have deterred foreign investment since beginning in late 2019. He said that his administration would use IMF money so that Argentina’s Treasury pays down part of its debt with the Central Bank in an effort to clean up the monetary authority’s balance sheet. 

Investors are keenly watching Milei’s negotiations with the Washington-based lender to see how much money he receives, which will affect how quickly he eliminates currency and capital controls. Milei’s strategy to dismantle the restrictions — while keeping the peso stable and growing the economy before October midterm elections — is also a top priority for businesses and markets.

Milei’s request to Congress is a key step because IMF agreements are required by law to be approved by legislative branch to be enacted, a measure created by the previous administration. 

After little progress in Milei’s first year in office, IMF negotiations appear to be gaining steam in 2025. The agency’s First Deputy Managing Director Gita Gopinath posted Friday on X that negotiations “are making very good progress.” Milei met with IMF Managing Director Kristalina Georgieva in Washington last month before attending an event with US President Donald Trump, the most influential leader over the institution.

During the state of the nation speech, Milei reiterated his intentions to negotiate a free-trade agreement with the Trump administration, emphasising the need to ease rules in the South American trade bloc Mercosur or leave altogether. 

The libertarian addressed the legislature amid escalating political tensions over a cryptocurrency scandal that ensnared his administration earlier this month. On the evening of February 14, Milei promoted a memecoin on X called $LIBRA that crashed soon after soaring quickly in value. The opposition pounced. Lawmakers and citizens filed more than 100 lawsuits and called for an impeachment trial. Milei has denied any wrongdoing.

In the days leading up to the address, Congress issued a statement saying that only legislators would be able to participate in the event, but Milei filled the chamber’s rafters with cheering supporters. Press access was also limited.

Milei has also clashed with lawmakers from moderate blocs after selecting two controversial Supreme Court justices, including one who has been named in multiple federal corruption probes. The upper house, led by Vice-President Victoria Villarruel, is tasked with approving or rejecting justices by a two-thirds vote. Milei holds less than 15 percentof seats across the legislature, a number he’s hoping to increase significantly in October’s midterm elections.

Milei passed a bill last week to suspend August primary elections, extending the runway for his measures to pay off before people go to the polls.

He has racked up a string of victories on the economic front. Monthly inflation is falling steadily, nearing two percent in January, while the economy continues to surpass expectations after exiting recession.