Argentina's deal with the IMF gets approved by senate

Argentina’s Senate approved on Thursday a $45 billion President Alberto Fernandez’s administration to the country’s debt with the International Monetary Fund (IMF).

After the Chamber of deputies approved the refinancing deal with the IMF last week, it was also passed in the senate with 56 votes in favor, 13 against, and three abstentions.  

The IMF’s board still has to approve the agreement.

For the past two years, Argentina has been in talks with the IMF to refinance the country’s outstanding debt from a $58 billion loan of 2018 contracted under former President Mauricio Macri.

The South American country had to make two payments in January, one for $700 million and another for $365 million.

"We had an unpayable debt, which left us without a present and a future. Now we have a reasonable agreement that will allow us to grow and meet our obligations through growth," Fernandez said in January.

The current government says the refinancing deal with the IMF will prevent the country from defaulting on loans and create larger economic problems for the country.

The deal proposes a 30-month period of refinancing to replace the debt. The deal, however, would also cause the prices for gas, electricity, and other public services to increase. The debt would be scheduled to between 2026 and 2034.

Argentina has to pay $2.8 billion to the IMF at the beginning of next week.