The International Monetary Fund on Tuesday said it had reached a staff-level agreement with Argentina on the third review of the country’s bailout, potentially unlocking about $900 million for the Latin American country.
In 2025, as it dealt with rampant inflation and currency depreciation, Argentina concluded an extended fund facility agreement with the IMF worth around $20 billion over four years. Since Milei took office in December 2023, inflation has dropped from triple digits to the current 33.5 percent. On the fiscal side, the IMF said Argentina had committed to delivering a primary surplus of 1.4 percent of GDP this year and next. Mortgage defaults have tripled over the past year, hitting 12.8 percent, the highest level in 20 years. Growth remains sluggish and earlier this month the IMF downgraded its forecast for GDP expansion to 2.1 percent in 2026.
In terms of monetary policy, the central bank would take actions to support disinflation and reserve accumulation, while allowing exchange rate flexibility within a band, the IMF said. economic performance has been lacking in other key areas While Milei’s government has succeeded in reining in runaway inflation.
Since then, President Javier Milei has instituted a wide-ranging reform plan involving slashing public spending and reining in inflation.
