Completely rewrite the following article in a fresh and original style. Ensure the new content conveys the same sentiment and message as the original. The rewritten article should:
- Start with a compelling introduction that hooks the reader (do not label this section).
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Organize the content into clear, logical sections. Subheadings are not mandatory. Each section should have a subheading only if it enhances readability and comprehension.
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Make sure the article flows coherently, is engaging, and keeps the reader interested until the end. Reorganize and structure the content efficiently to enhance readability and comprehension. Use varied sentence structures and vocabulary to avoid monotony. Avoid directly copying any sentences or phrases from the original content. Here is the original content:
Argentina to okay IMF loan through a presidential decree
Friday, March 7th 2025 - 10:53 UTC
The IMF said congressional approval was not necessary but would nevertheless speed the Board's nod
Argentine President Javier Milei plans to issue an Emergency Decree (DNU) to approve the new loan to be agreed upon with the International Monetary Fund (IMF), the Casa Rosada announced Thursday. As mandated by law, each DNU needs congressional approval to not be stricken. The new deal seeks to cancel National Treasury debt to the Central Bank, reducing total public debt and strengthening the Central Bank's balance sheet and subsequently lifting the so-called exchange stocks.
The program will allow strengthening the Central Bank's balance sheet, an essential milestone to consolidate stability and continue the disinflation process, the Office of the President (OPRA) said in a statement.
The agreement will imply a public credit operation through which the National Treasury will cancel existing debt with the Central Bank. The net result of this operation will imply a reduction of the total public debt, the document added.
The new understanding will allow strengthening the Central Bank’s balance sheet, an essential milestone to consolidate monetary, financial and macroeconomic stability and to continue with the disinflation process and the release of exchange restrictions, it further noted.
There is no more necessary and urgent matter than to put an end to the inflation that for years ruined the lives of Argentines. For this reason, the President of the Nation aspires to obtain an urgent commitment from the Congress, as it happened with all previous governments, the OPRA also mentioned.
Turning the fight against inflation into a State policy is a clear sign that the representatives of the people have understood the mandate expressed at the ballot box. This is why President Javier Milei places his trust in the commitment and responsibility of each national legislator towards the Argentine people and their economic wellbeing, it concluded.
Economy Minister Luis Toto Caputo, speaking at a Mendoza business forum, confirmed the agreement is slated for the first four months of 2025 and dismissed all devaluation fears, noting the IMF did not demand it. He also explained that these fresh funds would recapitalize the Central Bank without increasing debt. This is a step toward boosting investment through lower taxes and competition.
Meanwhile, IMF Spokeswoman Julie Kozack clarified that Argentina’s Congress’ approval was not required for the multilateral credit agency’s board to greenlight the US$ 20 billion disbursement to cover debt maturities. However, Parliament’s nod would expedite the approval.
