The new agreement would cover a period of 48 months and this Friday it would be discussed in a meeting of the financial entity
From the Casa Rosada they assure that the toughest fiscal and monetary adjustment has already been made during the first months of management. Now, they explain, it's time to move forward toward an orderly liberalization of the exchange market, a central objective of the libertarian model that seeks to restore predictability and competitiveness to the country.
In a new milestone for the Argentinian economy, the government of Javier Milei reached a historic technical agreement with the International Monetary Fund (IMF) to implement a comprehensive economic program under the Extended Fund Facility (EFF). The agreement, which must be approved by the Executive Board of the organization in the coming days, involves USD 20 billion—the equivalent of 15.267 billion Special Drawing Rights (SDR), or 479% of the country's quota—and represents a resounding endorsement of the stabilization plan undertaken by the libertarian administration.
The announcement was confirmed from Washington in an IMF statement that highlighted "the impressive initial progress of the authorities in stabilizing the economy, supported by a solid fiscal anchor", praising the rapid decline in inflation and the incipient recovery of economic activity and social indicators.
The credit requested by Argentina has a key feature: it will be freely available, meaning the government can use the funds without operational restrictions, a show of confidence by the organization toward the economic leadership headed by Minister Luis "Toto" Caputo. "This is not new debt—clarified the official—but an instrument to repurchase the non-transferable notes held by the Central Bank and thus restore its balance."
Even the managing director of the IMF, Kristalina Georgieva, publicly supported the approach of the Argentine government. "It's a reasonable request. They've earned it, given their performance," she stated in a conversation with the Reuters agency, referring to the possibility that the first disbursement represents 40% of the total agreed. The official also acknowledged that Argentina is finally addressing "the long-awaited economic reforms."
The national administration expects that the approval by the Board will be finalized before the weekend, which would not only strengthen international reserves but also help clear doubts in local markets, which have experienced weeks of volatility due to external factors and speculations surrounding the negotiation.
