IMF Reaches Staff-Level Agreement to Unlock $900 Million for Argentina

The International Monetary Fund reached a staff-level agreement with Argentina on the third review of a $20 billion bailout program. The deal could unlock approximately $900 million for the country, though the disbursement requires final approval from the IMF Executive Board.

IMF officials praised the reform program led by President Javier Milei for delivering "impressive results," citing improvements in foreign exchange reserves, fiscal buffers, and structural reforms across labor, trade, and capital markets. To secure the funds, the Government of Argentina committed to maintaining a primary surplus of 1.4 percent of GDP for the current and following year, while the central bank focuses on reserve accumulation and disinflation.

Economic indicators show a mixed recovery. Inflation has fallen from triple digits to 33.5 percent since December 2023, but the country continues to struggle with anemic consumer activity. Debt defaults have surged, with mortgage defaults hitting a 20-year high of 12.8 percent. Argentina remains the largest debtor to the IMF, with $1.2 billion due this year and $7.8 billion due in 2027.