IMF Makes $900 Million Available to Argentina After Executive Board Approval
Key Facts
International Monetary Fund staff and Argentine authorities reached a staff-level agreement on the third review of the 48-month Extended Fund Facility arrangement, a step that could give the country access to about $900 million, or 600 million Special Drawing Rights. The fund said in a statement carried by Mirage News that the financing remains subject to approval by the Executive Board, meaning the current agreement does not release funds immediately. The understanding follows an improvement in the reserve position and progress by the government in securing domestic and cross-border financing. It also brings the program back into focus after talks on the review were still underway in early October. The statement set a goal of strengthening external liquidity alongside continued fiscal discipline and investment-supporting reforms.
The fund said net international reserves exceeded the target set for end-June by about $4 billion, a comparison against a specified program benchmark date. The statement linked the improvement to central bank purchase flows; the bank has bought nearly $16 billion since the start of the year. During the same period, the Treasury raised more than $5 billion in foreign currency in domestic markets. These figures show that the reserve buildup came through central bank purchases and government financing from the domestic market, according to the statement. Preliminary central bank data had shown international reserves at $50.043 billion on October 15, with the figure subject to valuation changes.
Financing moves included the central bank refinancing $6 billion in repurchase operations, $5 billion of which is due in 2028, the statement said. The government also mobilized $3.2 billion in cross-border bank financing backed by guarantees, with support from official creditors. The fund said the authorities had made significant progress in securing an additional $1 billion before year-end. This adds to the financing the Treasury raised in domestic markets, in an effort to broaden available sources of foreign currency. These measures are part of the program's strategy to bolster reserves and financing from domestic markets, official partners and privatization proceeds.
On fiscal policy, the program targets a primary surplus equivalent to 1.4% of gross domestic product in 2026, with a similar fiscal effort in 2027 under the budget the government submitted to Congress. The statement said the central bank continues to target monetary aggregates while maintaining exchange-rate flexibility within the trading band. These policies place government financing and liquidity management within an effort to combine a sustained fiscal surplus with continued reforms. On investment, approved projects under the incentive regime for large investments, RIGI, have exceeded $76 billion. The fund said implementation of those investments is expected to support growth and job creation over the long term.
The program is part of the 48-month Extended Fund Facility arrangement. In May, the Executive Board completed the second review and made about $1 billion available, bringing total disbursements under the arrangement to about $15.8 billion. Discussions on the third review were still underway at an IMF briefing on October 1 and included the effects of potential tax revenues and fiscal targets. The shift from those talks to a staff-level agreement reflects progress toward completing the review, but Executive Board approval has yet to be secured. The new financing remains tied to meeting the program's outstanding conditions and procedures.
The fund said the third review is expected to be submitted to the Executive Board for consideration in early December, after the remaining agreed steps are completed. The statement did not specify a year for the expected submission. The board's approval is therefore the next decisive step toward making the announced financing available, preceded by steps the statement did not identify. The expected financing remains about $900 million, equivalent to 600 million Special Drawing Rights. Its disbursement timing will depend on the board's decision after it considers the review.