Javier Milei announced on Tuesday a reform of the Central Bank aimed at preventing the direct or indirect financing of the public treasury. He severely warned that those who choose to disregard fiscal balance could face imprisonment.
Ceremony and Academic Recognition
Milei made these statements during an event where he received the title of Doctor Honoris Causa from the San Martín de Porres University (USMP), located in Lima, Peru. The ceremony took place after the inauguration of the newly elected President of Peru, Keiko Fujimori.
USMP granted the honor to Milei in recognition of his commitment to strengthening economic and social freedom, as well as to state modernization. Academic authorities praised Milei's application of 'rigorous economic science' during his term (2023-2027), classifying him as a 'standard-bearer of liberty' and citing his words about the state unduly interfering in the market.
Proposals for the Central Bank
The Argentine leader expressed the intention to shield the Central Bank authorities, establishing that two-thirds of the Senate and the Chamber of Deputies would be required to remove any director of the institution. Thus, he ensured that no politician could arbitrarily dismiss the president of the Central Bank. According to him, the Central Bank is equipped with sufficient power to resist any political conflict.
Milei declared that the objective is to eradicate inflation and what he calls the 'sinister theft' of unbacked currency issuance. Furthermore, he emphasized morality as a state policy, defending the promotion of a culture of work and savings as pillars of his management.
Economic Strategy and Results
He contrasted Argentina's past, when it was a developed country in the early 20th century, with the state of underdevelopment it reached, attributing this to the legacy of populism, which allegedly destroyed the culture of work and savings. The Argentine president explained that his growth strategy is based on deregulation, human capital, and economic openness, after managing to reduce the fiscal deficit to 15% of GDP.
Milei reported that poverty, which reached 57% of the Argentine population when he assumed the presidency in 2023, has fallen to 29% currently, representing the exit of 14 million Argentines from poverty. He stated that the country has progressed in the right direction, mentioning that it inherited a daily inflation rate of 1.5%, while the current annual rate is around 30%.
International Support and Agreements
On Tuesday, Kristalina Georgieva, Director-General of the International Monetary Fund (IMF), offered strong support for the president's economic plan, recognizing the 'sacrifice' of Argentine citizens during the 'difficult' transition to macroeconomic stability.
The organization signed an extended facilities agreement with Argentina in April 2025, worth 20 billion dollars (equivalent to 17.5 billion euros). Last May, the IMF approved the second review of the program, even after the South American country failed again to meet the monetary reserve accumulation target, as occurred in the first review. This approval immediately released one billion dollars (875 million euros) to Argentina, raising the total disbursements of the program to 15.8 billion dollars (13.7 billion euros).
