IMF and Argentina Reach Staff Agreement on Third Program Review

International Monetary Fund staff and Argentine authorities reached a staff-level agreement on the third review of Argentina’s financing program on October 27. The agreement concerns the country’s 48-month Extended Fund Facility and still requires executive board approval. If approved, it would give Argentina access to about US$900 million, equivalent to SDR 600 million; the money has not yet been disbursed. The IMF said the program continued to deliver “impressive results, despite a more complex global backdrop.” It credited prudent fiscal and monetary policies with supporting disinflation and strengthening external buffers. According to the fund’s statement, net international reserves exceeded the end-June target by approximately US$4 billion, while the central bank bought close to US$16 billion in foreign currency so far in 2026. The government’s fiscal objective remains a primary surplus of 1.4% of GDP in 2026, with a similar effort envisaged for 2027 in the budget submitted to Congress. The Treasury raised over US$5 billion in foreign currency from domestic markets. The central bank also refinanced US$6 billion of repo operations, of which US$5 billion now matures in 2028. Argentina agreed the US$20 billion program in April 2025. The fund expects its executive board to consider this third review in early December, after the remaining agreed steps are completed. The staff agreement therefore advances the review process without constituting final approval of the next payment.