August 8, 2025 | Milei of Argentina Takes Another IMF Bailout

Argentina: Fiscal Fireworks and Another IMF Bailout

Argentine President Javier Milei wants to make Argentina great again — with another $20 billion from the IMF.

The bailout, approved in April, was controversial: nearly half of IMF board members were hesitant. Argentina already owes about one-third of the IMF’s total outstanding loans, and it’s defaulted nine times. But in this high-stakes tango, both parties are locked in. As former IMF director Héctor Torres put it: “We are mutual hostages — the largest debtor and the largest creditor.”

On August 1, the IMF released its latest review of Argentina’s finances. The country missed targets for rebuilding foreign reserves, but the IMF applauded Milei’s “appropriately tight fiscal and monetary policies” and moves toward a more flexible exchange rate. Translation: austerity is working — sort of.

Milei’s chainsaw economics — quite literally his campaign symbol — are being noticed. He vetoed a bill to boost pensions and disability spending this week. The IMF smiled. So did Donald Trump.

Javier Milei – Source: The Guardian

The two leaders are kindred spirits. Trump reportedly helped secure Argentina’s record-breaking $57 billion bailout in 2018. Now, with Milei chanting “¡Viva la Libertad, Carajo!” (roughly, “Long live freedom, damn it!”), Trump’s support was likely key to unlocking more IMF cash.

Source: The Independent

Milei, a self-described anarcho-capitalist, wants to dollarize the economy and abolish Argentina’s central bank. In the meantime, he’s delivered a fiscal surplus, and inflation has dropped — to a still-steamy 2% per month.

Polls suggest Milei could expand his slim congressional base in the October elections. If he does, and if Trump stays in office, expect more IMF love — and possibly a bigger chainsaw.

Hilliard MacBeth

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Hilliard MacBeth August 8th, 2025

Posted In: Hilliard's Weekend Notebook

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