The revisions were unveiled late Wednesday evening, just before the House launched into an all-night session to debate and vote on the bill. President Donald Trump has urged Republicans to get behind the legislation, which enacts some of his campaign promises.
The South American nation is already the IMF’s biggest debtor, owing some $43 billion. This new $20 billion loan represents the 23rd rescue package in the nation’s long and tumultuous history.Milei has rejected pressure from investors over the past year to lift the capital controls, insisting that the economic conditions needed to be right. Now, he said, it was finally time.
After the first $12 billion disbursement from the IMF, another $2 billion will hit Argentina’s central bank in the next two months, the fund said.International organizations will also pitch in, with the Inter-American Development Bank announcing later Friday $10 billion disbursed over the next three years.“With this level of reserves, we can back up all the existing pesos in our economy, providing monetary security to our citizens,” Milei said. “These are the foundations for sustained, long-term growth.”
It’s a high-risk mission, as scrapping the “cepo” could unleash years of pent-up demand for U.S. dollars and spark a currency run as companies try to send their long-trapped profits home.“It could be a tsunami of money out,” said Christopher Ecclestone, a strategist with investment bank Hallgarten & Company. “It’s a total guessing game as to what people will do.”
The central bank said that while it was lifting restrictions for the public, it would retain taxes on card purchases abroad and some regulations on companies. For instance, from 2025 on, multinational firms will be able to repatriate their earnings. But to get their already trapped holdings out of the country, they’ll need to exchange the debt for dollar-denominated security bonds.
It’s an effort to insure against capital flight, which would imperil Milei’s primary accomplishment of lowering inflation ahead of midterm elections in October that are crucial for his libertarian party to expand itsin 2022, it triggered a Missouri law to take effect banning most abortions. But abortion-rights activists gathered initiative petition signatures to reverse that.
Last November, Missouri voters narrowly approved a constitutional amendment guaranteeing a right to abortion until fetal viability, generally considered. The amendment also allows later abortions to protect the life or health of pregnant women and creates a “fundamental right to reproductive freedom” that includes birth control, prenatal and postpartum care and “respectful birthing conditions.”
A limited number of surgical abortions have since occurred in Missouri, butwhile Planned Parenthood wrangles with the state over abortion regulations.