Conservative lawmakers have expressed to the International Monetary Fund (IMF) their desire for a new deal with Argentina.
Argentina is the largest IMF debtor, owing the latter over $30 billion and has struggled to consistently pay its debts to the IMF.
Argentina’s financial woes resulted in the IMF placing Argentina on an extended fund facility (EFF) program, which limits the amount of IMF funds Argentina can request.
However, newly elected President Javier Milei has enacted economic policies antithetical to those of his socialist predecessors that have prompted American conservatives to project Argentina’s IMF payments will no longer be in arrears.
A group of Republican lawmakers from the US House of Representatives sent a joint letter to IMF Director Dr. Kristalina Georgieva requesting a renegotiation of Argentina’s IMF EFF deal.
The letter, led by US Representative Maria Elvira Salazar (R-FL) commended President Milei’s economic policies and underscored the IMF’s willingness to cooperate with Argentina’s previous socialist governments.
“According to reports, the economic adjustment plans (Milei) has implemented through the executive branch and the legislature are already curtailing inflation, hopefully setting Argentina on a path that ensures it will not miss any international financial obligations,” reads the letter. “As such, we ask that you consider these positive measures as you assist Argentina in charting the course ahead.”
The US is the IMF’s largest shareholder, having nearly 17% of voting rights at the institution.
“To repair the years of corruption and mismanagement, we believe that Argentina will need robust multilateral bank support, such as through a comprehensive IMF program, that would support Argentina’s difficult path toward economic health,” continues the letter.
US lawmakers have sought to harness the IMF’s economic might to channel their foreign policy interests.
Earlier this year, Senate Republicans and Democrats sought to use the IMF to counter China’s manipulation of its currency.
U.S. Senators Marco Rubio (R-FL) and Tammy Baldwin (D-WI) introduced the China Exchange Rate Transparency Act.
The Senators allege their legislation will protect American industry and workers from China’s currency manipulations, which often serve to boost Chinese exports at the expense of American goods.
The legislation would require the US Representative for the IMF to advocate for increased scrutiny of Chinese currency manipulations.
