- IMF staff and the Argentine authorities have reached a staff-level agreement on the third review of the Extended Fund Facility program, unlocking potential access to about US$900 million.
- Disciplined macroeconomic policies and market-oriented reforms continue to support disinflation, and improvements in Argentina's external position, with reserve accumulation exceeding program commitments.
- Building on these gains, understandings were reached on a balanced policy package aimed at further strengthening stability and resilience, while supporting investment, job creation, and growth.
Washington, DC: International Monetary Fund staff and the Argentine authorities have reached a staff-level agreement on the third review of Argentina's economic reform program, supported by the 48-month Extended Fund Facility (EFF) arrangement. Subject to approval by the IMF Executive Board, Argentina would have access to about US$900 million (SDR 600 million).
The authorities' Fund-supported program continues to deliver impressive results, despite a more complex global backdrop. Prudent fiscal and monetary policies have supported continued disinflation and substantially strengthened Argentina's external position and buffers. As a result, net international reserves have exceeded the end-June target by about US$4 billion, the central bank has purchased close to US$16 billion so far this year, the treasury has raised over US$5 billion in FX from the local markets, and the BCRA has refinanced US$6 billion of its repos, US$5 billion of which now mature in 2028. In addition, the government, with the support of official creditors, has mobilized cross-border guaranteed bank financing for US$3.2 billion and are well advanced in securing an additional US$1 billion before year-end. Meanwhile, wide-ranging structural reforms in the areas of trade, labor, investment and capital markets are enabling a more efficient and market-based economy, with exports volumes now reaching new heights. Approved investments under the large investment incentive scheme (RIGI) now exceed US$76 billion, and their execution is expected to strengthen growth and job creation over time.
Against this backdrop, understandings were reached on a balanced policy package to consolidate disinflation, further strengthen resilience, and enhance growth and employment. Key elements include:
- Fiscal policy. The fiscal anchor will remain central to the program, consistent with a primary surplus of 1.4 percent of GDP in 2026 and a similar fiscal effort in 2027, as reflected in the 2027 Budget submitted to congress. This would be the fourth consecutive year with a primary fiscal surplus and an overall fiscal balance. Continued expenditure discipline and reforms to the tax and fiscal frameworks will further consolidation efforts while protecting priority social and infrastructure spending.
- Monetary policy. The central bank will continue to target monetary aggregates, which will be carefully calibrated to support disinflation and reserve accumulation, while preserving exchange rate flexibility within the exchange rate band system. Efforts will continue to strengthen liquidity operations, improve monetary policy transmission, and support the continued re-monetization of the economy and a prudent expansion of credit.
- Reserves and financing strategy. To enhance resilience, reserve buffers will continue to be strengthened, supported by projected improvements in Argentina's external position. This will be complemented by the sustained implementation of the authorities' FX financing strategy, which will continue to mobilize financing from the domestic capital markets, official partners, and privatization receipts. The authorities agreed to preserve readiness to access international capital markets when conditions permit and activate contingent credit lines as needed. Efforts to further extend maturities will continue.
- Structural reforms. Priority will continue to be given to deepening domestic capital markets, expanding access to longer-term financing, facilitating the execution of strategic investments under the RIGI framework, and advancing recently awarded infrastructure concessions. Together with labor and market reforms implemented earlier this year and continued macroeconomic prudence, these efforts are expected to strengthen growth and employment over time.
IMF staff welcomes the strong and constructive engagement with the authorities and their continued commitment to disciplined policies and market-oriented reforms under the program. Upon completion of the remaining agreed steps, the third review is expected to be submitted to the IMF Executive Board for consideration in early December.
