The Argentine government and the staff of the International Monetary Fund reached a technical agreement to complete the third review of the 48-month Extended Fund Facility. The understanding clears the preliminary step toward a disbursement of about US$900 million—roughly 600 million Special Drawing Rights—but it is not yet final approval and does not mean the funds can be received immediately.
The review must be considered by the IMF Executive Board, expected in early December, after the remaining agreed measures are completed. That sequence is essential: staff verified progress and agreed on policies with the authorities, while the final legal and financial decision remains with the board. Until then, the disbursement is an advanced possibility rather than completed income.
The Fund's statement praised macroeconomic discipline and market-oriented reforms. It said both continue to support disinflation and an improved external position, and noted that reserve accumulation exceeds program commitments. The assessment gives the government technical backing but also confirms that continuity depends on preserving quantitative objectives and specific reforms.
The fiscal anchor remains central. The program keeps a primary-surplus target of 1.4% of GDP in 2026 and envisages a similar effort in 2027 under the budget proposal. The IMF links that result to spending discipline and changes in tax and fiscal frameworks while calling for protection of priority social and infrastructure expenditure.
Monetary policy will continue to revolve around targets for monetary aggregates. The Central Bank must calibrate them to support disinflation and reserve accumulation while preserving exchange-rate flexibility within the band system. The agreement also mentions stronger liquidity operations, better monetary transmission, remonetization and prudent credit expansion.
The financing strategy combines several sources. The government plans to mobilize domestic capital-market funding, official-sector loans and privatization revenue. It also agreed to remain ready to return to international capital markets when conditions permit and to activate contingent credit lines if needed. The stated purpose is to strengthen reserve buffers and extend maturities.
The structural chapter retains priorities beyond immediate stabilization. It includes deepening domestic capital markets, expanding long-term financing, facilitating strategic investments under the RIGI and advancing recently awarded infrastructure concessions. The Fund links those measures with labor and market reforms adopted during the year and expects them to support investment, employment and growth over time.
The next step is completing outstanding actions and obtaining Executive Board approval. If approved, the transfer will strengthen reserves and allow the government to claim compliance; if delayed, it will expose the gap between a staff agreement and actual foreign-currency availability. Beyond US$900 million, the review confirms that financing remains tied to a fiscal, monetary, exchange-rate and reform path shaping 2027 decisions.
