The International Monetary Fund Executive Board completed the second review of Argentina’s 48-month Extended Fund Facility arrangement and concluded the 2026 Article IV consultation, allowing an immediate disbursement of about USD 1 billion. Total disbursements under the arrangement rise to about USD 15.8 billion out of approved access of about USD 21 billion. The Board judged implementation to have remained strong despite a more challenging global and domestic backdrop, although the end-December quantitative target for net international reserves accumulation was missed. Most key performance criteria and indicative targets were met, and corrective measures have been implemented to rebuild reserves and reduce sovereign spreads. Directors backed the objective of an overall cash fiscal balance in 2026 through lower energy subsidies, better targeting of social transfers and restraint in discretionary spending, while preserving room for priority social spending. They also called for sustained foreign exchange purchases and exchange rate flexibility, further evolution of the monetary framework, regular quarterly reporting, and stronger central bank, regulatory and supervisory frameworks to improve policy transmission, deepen capital markets and contain foreign exchange and maturity mismatch risks. The Board also welcomed progress on deregulation and reforms in fiscal, trade and labor areas, while pointing to further work on tax, pension and governance frameworks to support durable international market access and growth. Directors said the exceptional access criteria continue to be met, but the program remains exposed to elevated external and domestic risks. They emphasized the need to maintain and implement contingency plans promptly if downside risks materialize.
International Monetary Fund2026-05-21
International Monetary Fund completes Argentina EFF second review and unlocks immediate USD 1 billion disbursement
The IMF Executive Board completed the second review of Argentina’s 48‑month Extended Fund Facility and the 2026 Article IV consultation, enabling an immediate disbursement of about USD 1 billion and bringing total disbursements to USD 15.8 billion of the USD 21 billion approved. The Board found implementation broadly strong despite missing the end‑December net international reserves target, endorsed fiscal consolidation toward an overall cash balance in 2026, and called for reserve rebuilding, greater exchange rate flexibility, monetary and supervisory reforms, and continued structural reforms, while noting elevated external and domestic risks and the importance of contingency planning.