- IMF staff and Argentine authorities have reached a staff-level agreement on the first review of the EFF program, unlocking potential access to about US$2 billion.
- The program has had a strong start despite a more challenging external backdrop -disinflation and growth have continued, poverty has fallen further, and Argentina has re-entered international capital markets ahead of schedule.
- Authorities remain committed to safeguarding the fiscal anchor, rebuilding reserves, durably reducing inflation, further enhancing the monetary framework, and advancing growth-enhancing reforms.
Washington, DC: International Monetary Fund (IMF) staff and the Argentine authorities have reached a staff-level agreement on the first 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$2 billion (SDR 1.529 billion).
The program has had a strong start, underpinned by the continued implementation of tight macroeconomic policies, including a strong fiscal anchor and a tight monetary stance. The transition to a more flexible exchange rate regime and the easing of most foreign exchange controls have proceeded smoothly, despite a more challenging external backdrop. The official exchange rate has remained around the midpoint of the band, inflation has continued to ease, the economic expansion has continued, and poverty has fallen further. Notably, Argentina has re-accessed international capital markets earlier than anticipated.
Consistent with the objectives of the program, understandings were reached on policies aimed at safeguarding achievement of the fiscal anchor, rebuilding reserve buffers, durably reducing inflation, and continuing to enhance the clarity and functioning of the monetary framework. This will be complemented by further actions to create a more open, resilient, and market-based economy.
Staff welcomes the authorities' continued commitment to the program. The IMF Executive Board meeting for the first review is expected to take place in late July.
