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

Argentina and the International Monetary Fund (IMF) have reached a staff-level agreement on the third review of the country's current program, unlocking a US$20 billion loan. This follows a previous US$45 billion debt taken during Mauricio Macri's government in 2018. The agreement, which needs board approval to become official, paves the way for an additional US$900 disbursement.

The IMF highlighted that prudent fiscal and monetary policies have dis-inflated the economy and strengthened Argentina's external position. They also praised trade, labor, investment, and capital market reforms that have boosted export volumes to new heights. The Central Bank's reserve purchases exceeded the June target by US$4 billion, and reserve accumulation now stands at US$16 billion.

The IMF also commended the US$76 billion approved under the large investment incentive scheme (RIGI), which will bolster growth and job creation. The lender outlined a policy package aimed at consolidating disinflation, enhancing resilience, and promoting growth and employment. Key elements include fiscal policy with a focus on a primary surplus of 1.4 percent of GDP in 2026 and 2027, monetary policy targeting money aggregates and exchange rate flexibility, strengthening reserves and financing strategy, and advancing structural reforms such as domestic capital markets expansion and labor market reforms.