Buenos Aires: The International Monetary Fund (IMF) announced it has reached a staff-level agreement with Argentina on a 48-month Extended Fund Facility (EFF) program worth $20 billion. The agreement, subject to approval by the IMF Executive Board, marks a significant step forward in Argentina’s efforts to restore economic stability.
According to the IMF statement released on Tuesday, the proposed arrangement “builds on the authorities’ impressive early progress in stabilizing the economy, underpinned by a strong fiscal anchor, that is delivering rapid disinflation and a recovery in activity and social indicators.”
The long-awaited agreement is critical for Argentina as it seeks to ease strict capital controls, replenish its foreign exchange reserves, and tame a severe inflation crisis that has gripped the country for months. The IMF emphasized that the details regarding the size and timing of the first disbursement will be confirmed during the Executive Board’s review of the program.
“When the board discusses the program, the amount of the first disbursement will be known,” an IMF source said, highlighting the pending approval required before the funds are released.
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The IMF Executive Board is expected to deliberate on the agreement in the coming days.
President Javier Milei, known for his libertarian economic policies, hailed the breakthrough deal. He publicly praised Economy Minister Luis Caputo on X (formerly Twitter), crediting him for spearheading the negotiations and achieving the agreement.
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The deal comes at a crucial moment for Argentina, which has faced ballooning inflation, dwindling international reserves, and deep investor skepticism. With this new program, the government hopes to rebuild confidence, attract foreign investment, and pave the way for sustained economic growth.
