International Monetary Fund staff and the Argentine authorities reached a staff-level agreement on the second review of Argentina’s economic reform program under the 48-month Extended Fund Facility arrangement. Subject to IMF Executive Board approval, the review would provide Argentina access to about USD 1 billion (SDR 0.8 billion) and includes understandings on a policy package spanning fiscal, monetary and foreign exchange, external buffers, financing and structural reforms. The package keeps the zero-cash balance as the fiscal anchor, consistent with a primary surplus of 1.4 percent of GDP this year, backed by continued expenditure controls while preserving space for targeted social assistance, alongside planned tax, pension and fiscal framework reforms. Monetary operations are to be strengthened with upfront measures to contain interest rate volatility and improve transmission and credit allocation, while policy remains tight; the framework also envisages widening exchange rate bands and publication of a quarterly report assessing performance against monetary program objectives. On the external side, net international reserves are projected to rise by at least USD 8 billion in 2026, supported by efforts to mobilize foreign exchange financing and sustain central bank foreign exchange purchases of at least USD 10 billion this year, following purchases exceeding USD 5.5 billion so far this year. The release also points to a strategy to refinance foreign exchange obligations via dollar-denominated domestic-law issuance, state asset sales, central bank repos and external loans potentially backed by international financial institutions, alongside legislative steps including approval of the 2026 Budget and measures covering asset formalization, labor market flexibility, trade agreements and mining investment. Upon completion of pending measures, the review is to be submitted to the IMF Executive Board for consideration.
International Monetary Fund 2026-04-15
International Monetary Fund staff reaches staff-level agreement on Argentina’s second Extended Fund Facility review, paving way for about USD 1 billion
IMF staff and Argentine authorities reached a staff-level agreement on the second review of Argentina’s 48‑month Extended Fund Facility, which, pending Executive Board approval, would unlock about USD 1 billion (SDR 0.8 billion). The package maintains a zero-cash balance fiscal anchor consistent with a 1.4 percent of GDP primary surplus, tight monetary policy, and wider exchange rate bands. It targets an increase in net international reserves of at least USD 8 billion in 2026, supported by at least USD 10 billion in central bank FX purchases this year. The strategy also envisages refinancing FX obligations through dollar-denominated domestic-law issuance, state asset sales, central bank repos, external loans, and legislative measures including approval of the 2026 Budget.