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The International Monetary Fund (IMF) has reached a staff-level agreement with Argentina that could unlock about $900 million in financial support, subject to approval by the Fund’s Executive Board.
The IMF announced the agreement on Tuesday following its third review of Argentina’s bailout programme, which was introduced to address high inflation, currency depreciation and other economic challenges.
Argentina secured a four-year financing arrangement worth about $20 billion from the IMF in 2025. Since taking office in December 2023, President Javier Milei has pursued sweeping economic reforms, including cuts to public spending and measures aimed at controlling inflation.
The reforms have attracted criticism, with reductions in social spending triggering protests across the country.
However, the IMF said Milei’s programme had delivered “impressive results”, pointing to improvements in the country’s fiscal position and foreign exchange reserves.
The Fund also praised reforms in trade, labour, investment and capital markets, saying they were helping Argentina move towards a more efficient, market-based economy.
Under the latest agreement, Argentina has committed to maintaining fiscal discipline and implementing further monetary policy measures.
The IMF said the government had pledged to achieve a primary budget surplus equivalent to 1.4 per cent of gross domestic product (GDP) this year and next.
Argentina’s central bank is also expected to take steps to reduce inflation and build up foreign exchange reserves while allowing the peso’s exchange rate to move within an established band.
The reform agenda will prioritise strengthening domestic capital markets and expanding access to longer-term financing.
Despite the progress reported by the IMF, Argentina continues to face economic challenges. Consumer spending remains weak, while loan defaults have increased sharply.
Mortgage defaults have tripled over the past year to 12.8 per cent, their highest level in two decades.
Economic growth has also remained sluggish. Earlier this month, the IMF lowered its forecast for Argentina’s GDP growth in 2026 to 2.1 per cent.
Argentina remains the IMF’s largest debtor, with $1.2 billion in repayments due to the Fund this year and a further $7.8 billion due in 2027.
The proposed $900 million disbursement will depend on approval by the IMF Executive Board.