BUENOS AIRES - Argentina's Congress gave President Javier Milei the green light to negotiate a new IMF loan agreement, on top of the $44-billion Buenos Aires already owes the lender.
Milei asked lawmakers on March 11 to approve a new 10-year loan to boost the central bank's foreign currency reserves and cover looming debt payments.
The amount of the prospective loan to South America's second-biggest economy -- which has been bailed out by the International Monetary Fund 22 times, despite several debt defaults -- has not yet been disclosed.
Under a 2021 law, Argentina's president must seek authorization from both houses of Congress to take money from the IMF, but only needs support from one to proceed.
With 129 votes in favour to 108 against and six abstentions in the Chamber of Deputies, the lower house, Milei now has a free hand to finalize the agreement.
Milei's small libertarian party is in a minority in Congress but has formed ad hoc alliances to push through its cost-cutting agenda.
The vote on the IMF loan took place as thousands of protesters gathered near the legislature to protest Milei's austerity measures as well as his negotiations with the IMF.
Milei says the new IMF loan will allow the government to pay off its debts to the central bank and help "exterminate" inflation, the country's eternal bugbear.
Argentina has one of the highest inflation rates in the world.