IMF strikes preliminary Argentina deal as market return dims
IMF staff laud Milei’s “prudent fiscal and monetary policies” and pointed to an improved balance sheet at the Central Bank, but tone down language over return to international credit markets. Leer más
The International Monetary Fund and Argentina have reached a staff-level agreement on the third review of the US$20-billion loan program, according to a source. The deal, awaiting executive board approval, will provide the Argentinian government with US$900 million.
Most of the loan program has already been disbursed in previous reviews. IMF staff praised President Javier Milei's "prudent fiscal and monetary policies," highlighting an improved balance sheet at the Central Bank as key accomplishments. However, a crucial factor for Argentina's long-term repayment is its return to international capital markets, which Milei has delayed in pursuit of lower interest rates.
Argentina's sovereign bonds currently yield over 12 percent, making a near-term return to international markets unfeasible. In April, IMF staff mentioned a potential "timely and sustainable access to international capital markets" during a second review when yields were lower. The current review states that Argentina's authorities agreed to "preserve readiness to access international capital markets when conditions permit" and to activate "contingent credit lines as needed."
IMF staff noted that Milei's government will implement the remaining agreed steps before presenting the third review to the lender's executive board for approval. However, no further details were provided.
Written by urgent.news from Buenos Aires Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
