Argentina's debt deal with IMF gets final legislative OK

BUENOS AIRES, Argentina (AP) — Argentina's Senate gave final legislative approval Thursday for President Alberto Fernández's administration to refinance the government's $45 billion debt with the International Monetary Fund and avoid a default.

The lawmakers voted 56 to 13, with three abstentions, to approve the deal signed with the IMF in early March. It was approved by the Chamber of Deputies last week, but it must still be approved by the IMF's board.

While the approval helps the South American country avoid another default and economic turmoil, it may have created an insurmountable fracture between Fernández and his powerful vice president, former President Cristina Fernández, who has questioned the terms negotiated with the IMF.

The debate about refinancing has generated protests by Argentines angry over past IMF deals that they saw as disastrous for the country's economic wellbeing. Demonstrators hurled rocks and set fires in front of the Congress building during protests last week.

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

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

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

Leftist forces, including some members of the governing party close to the vice president, argued that some of its measures would worsen conditions for the 40% of Argentina’s people who are poor.

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