The IMF urges Argentina to “stay the course” despite doubts over growth and country risk

The International Monetary Fund (IMF) advised Argentina's government to remain committed to its economic program, emphasizing that it is the best approach to lower the country risk. IMF spokeswoman Julie Kozack stated during a press briefing in Washington that maintaining strong policy implementation is crucial. She highlighted the importance of accumulating net international reserves and strengthening the external position.

The IMF and the Argentinian government agreed on the necessity of expanding the benefits of stabilisation into stronger growth and job creation.

The four agreed-upon measures to transform the stabilization gains into growth and employment opportunities include deepening capital and mortgage markets, improving labour market flexibility, advancing infrastructure concessions, and facilitating strategic investments under the Incentive Regime for Large Investments (RIGI). As of now, projects under RIGI exceed $76 billion.

The third review of the Extended Fund Facility programme, which would lead to a disbursement of approximately $900 million, was recently reached between IMF staff and Argentine authorities. The board could consider this review in early December. Kozack mentioned that the programme has delivered impressive results despite a more complex global environment, with net reserves surpassing the June target by about $4 billion, the Central Bank purchasing nearly $16 billion this year, and the Treasury raising over $5 billion in local markets.

The government, supported by official creditors, secured $3.2 billion in guaranteed international bank financing and is aiming for an additional $1 billion before the end of the year.

The agreement also ensures the target of a primary surplus of 1.4% of GDP for 2026 and a similar goal for 2027, along with maintaining the exchange rate band regime. In October, the IMF revised its 2026 growth forecast for Argentina from 3.5% to 2.1%.