IMF Approves Third Review of Argentina Loan Program, Paving Way for $900 Million Disbursement

Representatives of the International Monetary Fund and Argentine authorities reached a technical agreement on the third review of Argentina's economic reform program, which is backed by a 48-month arrangement under the Fund's Extended Fund Facility. The agreement follows a technical mission to Buenos Aires last month and several weeks of work with Argentine officials.

Pending approval by the IMF's executive board, Argentina would gain access to approximately US$900 million. The disbursement is expected to be enabled in early December under the US$20 billion program agreed between the Fund and the government in April last year.

“The program of the authorities that has the support of the IMF continues to yield impressive results, despite a more complex global context.”

The IMF said Argentina's prudent fiscal and monetary policies have helped continue the disinflation process and substantially strengthened the country's external position and buffers. Net international reserves have exceeded the end-June target by approximately US$4 billion.

The central bank has purchased nearly US$16 billion so far this year, while the Treasury has raised more than US$5 billion in foreign exchange in local markets. The central bank has also refinanced US$6 billion of its repo operations, of which US$5 billion matures in 2028.

The government, with the support of official creditors, has mobilized US$3.2 billion in international bank financing with guarantees and is very advanced in talks to obtain an additional US$1 billion before year-end. Approved investments under the Large Investment Incentive Regime already exceed US$76 billion.

Economy Minister Luis Caputo met with IMF Managing Director Kristalina Georgieva in Bangkok on October 13 during the annual meetings of the Fund and the World Bank. The IMF said agreements were reached on a balanced set of policies to consolidate disinflation and reinforce stability and resilience while fostering investment, job creation, and growth.