The IMF throws a hand to Javier Milei´s economic plan, expanding social emergency and reinforces the crisis in Argentina over a new agreement for a $20 billion debt.

A new US$20 billion agreement between Argentina’s government and the International Monetary Fund (IMF) reaffirms neoliberal class policies, initiating a wave of fiscal austerity that deepens the social crisis for most Argentinians.

Kristalina Georgieva, IMF Director, recently stated that “the will for change shall not be derailed” this year as Argentina approaches legislative elections in October, while openly endorsing Milei’s vision. Of course, this is far from a courtesy speech; it signals explicit interference in Argentina’s internal affairs and suggests a continuation of austerity policies that have already burdened previous generations.

Under the IMF-forged deal, Argentina will be required to slash healthcare and education spending to curb inflation and secure international capital market lending. Historical precedent and recent research demonstrate that such programs increase unemployment, erode purchasing power, and leave more people living in poverty , disproportionately affecting vulnerable populations.

The text reads: Just in case anything was missing. Brutal interference in the internal affairs of the President of #FMI @KGeorgievaRegarding #EleccionesLegislativas of October 26th: “It is essential that the will for change not be derailed. So far, we don’t see this risk materializing.”What will Georgieva do when Milei loses the legislative elections? Who will she demand the illegal and illegitimate loan she gave to the libertarians from?

The Social Cost of Debt

Rather than offering structural solutions, the new debt deal compromises Argentina’s economic sovereignty and perpetuates financial dependency. The IMF itself acknowledges Argentina as its largest debtor, highlighting the extent of external influence over national policies. The social toll of cuts is already evident in rising joblessness, labor precarity, and deteriorating public services.

The IMF’s intervention in Argentina’s political debate, through explicit support for Milei, undermines non-intervention principles and democratic legitimacy. The institution, historically aligned with Global North powers, restricts Argentina’s policy autonomy and limits citizens’ ability to shape their future.

If Milei loses October’s legislative elections, questions remain about who will assume responsibility for a debt widely deemed illegitimate by Argentine society and political sectors. The IMF, which has previously loaned to governments lacking social consensus, again forces Argentina’s people to choose between deeper austerity or renewed debt crises.

The IMF-Milei alliance entrenches Argentina’s cycle of debt and austerity, historically linked to recurrent crises. While the IMF praises the “will for change,” millions face uncertainty, precarity, and social resistance. The fight for economic sovereignty and social justice remains the primary challenge for grassroots movements against global financial powers’ interference.