Argentina to use revenue from privatisations to 'modernise' Armed Forces

Argentina will be earmarking part of its privatisation windfalls from the sale of state assets to a plan to modernise the Armed Forces, President Javier Milei’s government confirmed Monday.

"Ten percent of the revenue from selling or leasing state assets will be destined to re-equipping and modernising the Armed Forces," said Cabinet Chief Manuel Adorni.

The same percentage will apply to the earnings from privatising companies with state shareholdings.

The norm, published in the Official Gazette, further establishes that the amount will rise to 70 percent if the asset in question falls under the Defence Ministry.

Although the government’s original intention was to privatise over 40 companies, it has so far only done so with IMPSA, a company dedicated to producing turbines, which had been nationalised in 2021 during ex-president Alberto Fernández administration (2019-2023).

Milei’s government has announced that it has started the process of privatising a railway line, energy companies, the National Mint, the country’s biggest waterworks and an airport freight company. The Executive Branch estimates that these sales will materialise before the end of the year.

The privatisations, estimated to be worth US$2 billion by Economy Minister Luis Caputo, and the sale or lease of property, are one further display of the rapprochement which the government is attempting with the Armed Forces.

President Milei had previously appointed as Defence Minister Lieutenant-General Carlos Alberto Presti, the first military officer to head that portfolio since the dictatorship ended.

Argentina’s governments following the last military dictatorship, stretching from 1976 to 1983, generally observed a distant relationship with the Armed Forces.

Argentina’s most recent armed conflict was against the United Kingdom in 1982 over the Malvinas (Falkland) Islands, ending in defeat.

– TIMES/AFP