IMF backs Milei’s reforms in third review of Argentina deal

The International Monetary Fund (IMF) has reached a staff-level agreement with Argentina on the third review of its US$20-billion financing programme, paving the way for a disbursement of approximately US$900 million.

The release is subject to final approval by the fund’s Executive Board.

The 48-month arrangement, agreed in April 2025, backs President Javier Milei’s economic reform programme as his government seeks to tackle inflation, strengthen foreign currency reserves and sustain economic growth.

“The authorities’ Fund-supported programme continues to deliver impressive results, despite a more complex global backdrop,” the IMF said in a statement, adding that prudent fiscal and monetary policies had supported falling inflation and substantially strengthened Argentina’s external position.

The Fund said net international reserves had exceeded the programme's end-June target by approximately US$4 billion. The Central Bank (BCRA) has purchased nearly US$16 billion in foreign currency so far this year, while the Treasury had raised more than US$5 billion in foreign currency through domestic markets.

The IMF also highlighted US$76 billion in approved investments under Milei's flagship RIGI investment incentive scheme, saying the execution was expected to strengthen growth and job creation over time.

The agreement establishes a continued commitment to fiscal discipline, with the government targeting a primary surplus of 1.4 percent of GDP in 2026 and a similar fiscal effort in 2027. If delivered, this would mark a fourth consecutive year of primary fiscal surpluses and overall fiscal balance, said the Fund.

Argentine authorities have agreed to continue accumulating reserves, maintain monetary policies aimed at reducing inflation and preserve exchange rate flexibility under the current currency band system.

The review comes amid a more challenging economic outlook. In its October World Economic Outlook, the IMF cut its forecast for Argentina’s economic growth in 2026 to 2.1 percent, from 3.5 percent previously, while raising its inflation projection to 32.5 percent.

Argentina remains the IMF’s largest debtor with around US$56.8 billion owed.