Argentine President Javier Milei said today that his government will not take on new foreign debt. He said he is not willing to devalue the currency to destroy Argentines, and announced radical changes to the national budget to ensure a zero deficit.
“Our methodology will be called ‘zero deficit’ and it implies that the financial result is zero, so Argentina stops going into debt,” he said. Milei also praised his ministers as “giants”, stressing that his economic model is known in the world as the “Argentine miracle”, in reference to the praise that former US President Donald Trump had expressed a few days ago.
“Nobody wants to abolish the fixed exchange rate more than me,” he told the Council of the Americas, a business forum, but he made clear that doing so without resolving the underlying problems would create “a bigger problem.”
According to estimates by the Social Debt Observatory of the Catholic University of Argentina (UCA) in the first quarter of the year, poverty in Argentina reached 55% of the population, the highest level since 2002. Children are particularly affected, 1.8 million in the first half of 2023, 250,000 more than in 2022, according to a UNICEF report published last Monday.
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