By Nicolás Misculin

BUENOS AIRES, Reuters – Argentina’s Senate voted on Thursday night to approve a $45 Billion debt agreement with the International Monetary Fund. This converts the agreement into law and ensures that Argentina can avoid another default.

After a long debate, the IMF debt restructuring plan backed by President Alberto Fernandez passed 56 senators to one vote, thirteen against and three abstentions.

Fernandez, the center-left Peronist government of South American, reached an agreement at staff level with the international lender in March. It was later approved by the Chamber of Deputies.

Now, the IMF board needs to sign off on it.

This agreement outlines a new schedule for financing in a period of 30 months to replace the failed program of $57 billion from 2018, which was not repaid by the grain-producing country after years of capital flight, spiraling inflation, and recession.

Although it was supported by the majority of the center-right opposition party, some legislators from the ruling party opposed the bill due to its economic conditions, including raising interest rates, decreasing energy subsidies, and reducing the deficit.

“This agreement allows us to accumulate resources, which will favour Argentina’s trades with the rest of the world, and will allow for sustained growth,” stated Senator Sandra Mendoza (from the Peronists), during the debate.

Roberto Basualdo from Together for Change was a senator who told Reuters earlier that day that approving any deal would have a major impact on future economic expansion.

He said, “We have to grow” and that the best way to achieve this is through international markets.

Numerous lawmakers stated that voting removes the worst case scenario in the near-term for economic prospects.

“By approving the agreement, we prioritize the interests of Argentina’s republic by preventing default,” stated Senator Jose Torello of the opposition alliance.

Fernandez needs to approve the agreement quickly before the IMF’s $2.8 billion payment at the start of next week, and then billions later in the year. Repayments would be made under the new program between 2026-2034.