IMF says it will approve review of Argentina’s programme next week

The International Monetary Fund (IMF) says it will approve its latest quarterly review with Argentina next week, allowing the release of US$1 billion in fresh funds.

In a statement issued last month, the IMF confirmed a deal had been reached with President Javier Milei’s government over the second review of the nation's 48-month Extended Fund Facility (EFF) agreement.

The new tranche – the third under the programme approved in April 2025 – still requires sign-off from the IMF’s Executive Board.

“A board meeting will be held next week. Once the board approves it, US$1 billion can be disbursed,” IMF spokeswoman Julie Kozack said Thursday at a press conference held in Washington.

If the staff report is approved by the IMF’s board, Argentina would receive a US$1-billion disbursement, taking the total released through the deal to US$15 billion.

The country begins principal repayments in September under its prior agreement with the lender.

Kozack also highlighted the progress of the economic plan being implemented by President Javier Milei’s government: “The programme is delivering significant progress.”

Despite the positive outlook, the spokeswoman avoided elaborating on the country’s situation in response to specific questions, such as the fall in tax revenues, the economic impact of the situation involving Cabinet Chief Manuel Adorni and Wednesday’s mass protest over cuts to education funding.

Kozack focused on the achievements that, from the IMF’s perspective, the programme has delivered, notably the reduction in poverty and macroeconomic stability.

The spokeswoman confirmed that the board meeting will trigger a disbursement of US$1 billion.

Argentina remains the International Monetary Fund’s largest debtor, with the Milei administration currently operating under a new US$20-billion EFF deal agreed in 2025. 

The programme was designed both to refinance part of the country’s previous US$44-billion IMF arrangement and to support President Milei’s efforts to dismantle currency controls, rebuild Central Bank reserves and regain access to international capital markets. 

The IMF anticipates lower growth for Argentina this year than in 2025 – 3.5 percent compared to 4.4 percent in 2025. Inflation is forecast at around 30 percent.

– TIMES/NA/AFP