Argentina, IMF reach staff-level agreement on third review of current program

The Argentine government and the International Monetary Fund (IMF) have reached a staff-level agreement on the third review of the current program. This agreement allows for a US$20 billion loan, adding to the previous US$45 billion debt taken in 2018 during the Mauricio Macri administration. The fund will provide an additional US$900 disbursement for the Milei administration upon board approval.

The IMF stated that prudent fiscal and monetary policies have supported disinflation and strengthened Argentina's external position. Trade, labor, investment, and capital market reforms have led to more efficient and market-based economies with export volumes at new heights. The Central Bank's reserve purchases exceeded the June target by US$4 billion, bringing the yearly reserve accumulation to US$16 billion.

The fund also praised the US$76 billion approved under the large investment incentive scheme (RIGI), which will strengthen growth and job creation.

The agreement is based on four elements: fiscal policy, monetary policy, reserves and financing strategy, and structural reforms. Fiscal policy will maintain a primary surplus of 1.4 percent of GDP in 2026 and a similar effort in 2027. Monetary policy will target money aggregates to support disinflation and reserve accumulation while maintaining exchange rate flexibility.

Reserves and financing strategy will continue to strengthen reserve buffers and mobilize financing from domestic capital markets, official partners, and privatization receipts. Structural reforms will focus on deepening domestic capital markets, expanding access to longer-term financing, and advancing infrastructure concessions.