LatinNews Daily - 20 December 2021

* Argentina’s government led by President Alberto Fernández has announced that it will extend the national 2021 budget after the national lower chamber unexpectedly rejected its 2022 budget proposal with 132 votes against, 121 votes in favour, and one abstention. The opposition argued that the initiative, which forecasts 4% GDP growth this year and 33% inflation, and which reduces energy subsidies and increases social spending, is not based on realistic macroeconomic targets. As well as dealing a blow to the government’s economic reactivation plans, the vote by the lower chamber also creates uncertainty over talks with the International Monetary Fund (IMF) to which Argentina owes US$44bn. President Fernández said that since the budget’s rejection, he had spoken with IMF managing director Kristalina Georgieva. “We both recognised the unexpected problem of the budget rejection, but we pledged to remain fully focused on producing an agreement that does not compromise the continuity of inclusive economic recovery,” he said. Georgieva tweeted that she had held a “very good meeting” with President Fernández and that both teams were “fully committed to continue working towards an IMF programme.”

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