Argentina’s President, protesters slam IMF debt and austerity measures amid flagging economy

[1/3] A demonstrator throws a stone during a protest in front of the National Congress as members of parliament debate the government’s agreement with the International Monetary Fund (IMF) in Buenos Aires. Continue reading

BUENOS AIRES, May 18 (Reuters) – Argentine President Alberto Fernandez and protesters in Buenos Aires on Thursday fought back against the International Monetary Fund (IMF) as tensions with the lender grew as the country grappled with inflation hitting nearly 109% and dwindling dollar reserves.

The South American grain producer, which has a troubled past with the IMF, agreed in 2018 with the Washington-based body under former Conservative leader Mauricio Macri on a $57 billion program to avert the economic crisis. That fell through and was replaced by a new $44 billion deal last year.

But tensions have risen as a severe drought has hit grain exports, Argentina’s main source of dollars, forcing both sides to return to the negotiating table to revise the deal. Buenos Aires wants faster payouts and easier economic goals.

“More than a guilt, it’s a crime,” President Fernandez wrote in a tweet Thursday, citing a new report by an auditor that concluded the original deal lacked the required impact assessment and did not have it had been passed through the right legislative channels.

Fernandez, who previously criticized the original deal, called for an investigation “with the full force of the law.”

Powerful but divisive Vice President Cristina Fernandez de Kirchner, a two-term former president, called the original deal “scandalous” and a “fraud” of the Argentine people.

Macri and the IMF have defended the original agreement as necessary to restore Argentina’s economic stability. Critics of the current administration blame it for printing money to fund government spending, which they say fuels inflation and weakens the peso.

The IMF declined to comment on the new criticism of the deal.

Thousands of Argentines marched on the streets of Buenos Aires on Thursday in protest at difficult economic conditions and the IMF, which many blamed for the austerity measures that exacerbated Argentina’s worst economic crisis in two decades.

“Our concern is that the IMF is interfering in Argentina’s own internal affairs,” said protester Norma Morales, defending government subsidies as essential, especially given that the poverty rate has risen to about 40%.

“Many pensioners on the minimum pension are at risk, as are many women on universal child support – a right so children can continue to learn and eat. We have no guarantee of two plates of food a day for children in our country.” .”

Reporting by Miguel Lo Bianco and Horacio Soria; Additional reporting by Rodrigo Campos; Writing from Anna-Catherine Brigida; Edited by Aurora Ellis

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