Milei's government managed to reach the first staff-level agreement with the IMF

The International Monetary Fund (IMF) and Argentine authorities reached a staff-level agreement on the first review of the program under the Extended Fund Facility (EFF) arrangement.

This progress opens the possibility of unlocking around US$2 billion (equivalent to SDR 1.529 billion), subject to approval by the IMF Executive Board.

Positive balance despite complex external context

The official memorandum highlights that the program started at a good pace, despite facing a challenging international environment.

Argentina managed to maintain disinflation, continue economic growth, reduce poverty, and reenter international capital markets earlier than expected.

Stable macroeconomic foundation

The agreement acknowledges that the country continues to implement strict macroeconomic policies, including a solid fiscal base and a restrictive monetary stance.

It also highlighted the transition toward a more flexible exchange rate regime and the easing of most exchange controls, without generating tensions in the market.

Key compliance factors and future agenda

The staff-level agreement included commitments to ensure:

• Safeguarding the fiscal anchor and strengthening reserves.
• Continuing to reduce inflation in a lasting manner.
• Improving the monetary framework and promoting clarity in its operation.
• Advancing reforms that foster a more open, market-oriented model.

The fund indicated that the IMF Executive Board will review the first review at the end of July.