Javier Milei has sparked intense debate with its insistence on obtaining a “blank check” for the restructuring of public debt. This proposal, included in the 2025 Budget Bill, seeks to grant broad powers to the Executive Branch to manage the debt without the usual restrictions imposed by Congress.
The measure of Javier Milei has been met with criticism and concern both within and outside the political arena. The 2025 Budget Bill submitted by the Executive Branch provides for a series of powers for the president that override Congress’s control over public management.
Among these powers, the intention to eliminate the restrictions established by the Financial Administration Law stands out, which defines guidelines so that a restructuring of the public debt is not detrimental to the national treasury.
Instead of following these guidelines, the government of Milei seeks to have greater freedom to manage debt as it pleases, which has been interpreted by many as an attempt to obtain a “blank check.” The restructuring of public debt is a highly relevant issue for Argentina, especially considering the large maturities that lie ahead and the need to obtain new financing from the International Monetary Fund (IMF).
However, Milei’s proposal has raised concerns due to the lack of controls and restrictions that could lead to decisions that are detrimental to the country. According to a report by the Center for Political Economy of Argentina (CEPA), the budget project seeks to grant the Executive the ability to renegotiate the debt without the obligation to improve the amounts, terms or interest of the original operations.
Article 55 of Law 11,672, Permanent Complementary to the Budget, empowers the Ministry of Economy to carry out debt restructuring within the framework of Article 65 of the Law on Financial Administration and Control Systems of the National Public Sector No. 24,156 and its amendments.
Operations
This article establishes that the Executive Branch may carry out public credit operations to restructure the public debt provided that this implies an improvement in the amounts, terms and/or interest of the original operations.
However, the draft budget of Javier Milei The proposal seeks to replace this article with one that does not refer to these restrictions, which would allow for greater discretion in debt management. The proposal has been criticized by various sectors, which argue that giving the Executive a “blank check” for debt restructuring could lead to decisions that benefit banks and creditors to the detriment of the country.
