Argentina's Milei Signs Decree 179/2025 for IMF Deal with 10-Year Repayment Plan

Argentine President Javier Milei has signed Decree 179/2025, an emergency measure (DNU), to authorize a new agreement with the International Monetary Fund (IMF). The agreement is structured as an Extended Fund Facility (EFF) with a 10-year repayment period and a grace period of 4.5 years. The funds from the IMF will be used to cancel existing debts, including non-transferable Treasury bonds held by the Central Bank and obligations from the 2022 IMF agreement. According to the government, the Central Bank's reserves, which were negative $11.2 billion in December 2023, have increased by $7.03 billion as of March 2025. The decree also aims to address inflation, which stands at 84.5%, and reduce poverty, which has dropped to 38.9%. The decree has sparked controversy as it bypasses Congress, which is required by Argentine law to approve international debt agreements. Opposition lawmakers have filed a criminal complaint against Milei, alleging abuse of authority and violation of constitutional duties. Critics argue that the decree undermines institutional processes and lacks transparency, as the specific loan amount and detailed terms of the agreement remain undisclosed.