World News | Argentina Lawmakers Pass IMF Refinancing Deal Amid Protests

Buenos Aires, Mar 11 (AP) Argentine lawmakers on Friday approved an agreement with the International Monetary Fund (IMF) to refinance a USD 45 billion debt, a vote meant to avoid economic turmoil, but that divided the ruling party.

The overwhelming vote of 202 to 37, with 13 abstentions, followed a marathon debate through the night while protesters angry over past IMF deals they saw as disastrous demonstrated and hurled rocks and set fires in front of the country's Congress building.

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The measure now goes to the Argentine Senate and also must be approved by the IMF's board.

Argentina assumed the debt in 2018 during the conservative President Mauricio Macri's government, but failed to fully crush inflation or solve the country's economic problems.

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The current left-of-centre government said the refinancing agreement reached with the IMF last week was essential to avoid a default on the loans and even greater problems for an economy scarred by repeated past defaults and crises.

It would let Argentina delay repaying its debt until 2026, with payments continuing through 2034. The debt payments would be concentrated in 2022 and 2023 under the previous arrangement.

“It is the best agreement that could be achieved,” said Carlos Heller, head of the Chamber of Deputies' Budget and Finance Committee.

President Alberto Fernandez secured support for the deal from the main opposition bloc in exchange for some modifications.

Leftist forces, including some members of the governing party close to Vice President Cristina Fernandez, argued that some of the measures would worsen conditions for the 40 per cent of poor Argentines.

Rocks thrown by protesters wound up smashing windows and damaged her office in the Congress, where she presides. The Vice President, in a video message, called the damage "paradoxical" because she as the president had earlier opposed deals with the IMF — as had her late husband, former President Nestor Kirchner.

Their son Maximo, now a congressman, voted against the agreement and had earlier protested by resigning as head of the ruling movement's delegation in the Congress.

The government maintains the new deal would not require any overhaul of the pension system or labour rules, though it would force an increase in prices for gas, electricity and other public services. (AP) PY

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)