Argentina reaches IMF staff deal, opening door to $1 billion in fresh funds

Argentina reached a staff-level agreement with the ​International Monetary Fund on the second review of ‌its $20 billion program, the IMF said on Wednesday, unlocking the disbursement of $1 billion, subject to approval by the IMF Executive Board.

“Reform momentum ​has significantly strengthened in recent months,” the IMF ​said in a statement, recognizing greater political support ⁠in South America’s second-largest economy for key reforms, as ​well as improvements to monetary and FX policy that have ​helped it begin to accumulate critical foreign reserves.

Argentina sealed the $20 billion, 48-month deal a year ago – its 23rd deal with the Washington-based lender – in order ​to help roll over an earlier $44 billion deal and ​give the government of libertarian Javier Milei financial firepower to undo capital ‌controls.

Markets ⁠have since closely tracked the government’s ability to restore its depleted foreign reserves, a key requirement under the deal. When approving its first review last July, the IMF lowered the ​bar for the ​reserve accumulation ⁠targets through 2026 after the country failed to meet the deal’s initial target.

In recent ​months, however, the IMF has applauded the Argentine ​central ⁠bank’s daily purchases of foreign currency to meet Argentina’s debt obligations and rebuild its reserve buffers.

In 2026, Argentina’s central bank ⁠has ​accumulated over $5.5 billion in purchases, although ​its reserves remain smaller because of ongoing debt payments.