Argentina and the International Monetary Fund (IMF) reached an agreement at a technical level in the second review of the Extended Facilities (EFF) program. The country will access US$1,000 million once the organization’s Board of Directors formally approves the understanding.
The announcement came after the Argentine Congress approved the 2026 Budget and a package of laws linked to the Government’s economic agenda. These legislative advances were a key condition for unblocking the review.
The technical agreement is only the first step: the IMF staff gave its approval, but the organization’s Executive Board must ratify it in a formal meeting for the funds to be effectively disbursed.
Both parties agreed on a set of policies aimed at sustaining the disinflation process, strengthening external stability and promoting economic growth. Among the measures are rules to regulate the holding of financial assets by residents, changes in the labor market, ratification of trade agreements and facilities for investments in sectors such as mining.
The Central Bank accumulated US$5.5 billion so far this year
According to the IMF statement, the Central Bank of the Argentine Republic (BCRA) registered foreign currency purchases for more than US$5.5 billion so far this year. This process was pointed out as a factor that affects the country’s ability to face variations in the international context.
The organization also highlighted that companies based in Argentina once again repatriated dividends. This occurred in a context of changes in financial conditions that the technical report assesses as positive for the normalization of the exchange market.
Foreign currency purchases were possible thanks to modifications in the monetary and exchange framework that the Government implemented in recent weeks. This initial accumulation of reserves It was one of the points that the IMF staff evaluated favorably during the review.
What fiscal goals did the Government set for the current year?
The agreement contemplates financial balance on a cash basis as its central axis. Argentina projects a primary surplus of 1.4% of GDP for the current year, accompanied by public spending control policies and the continuity of targeted social assistance programs.
The fiscal objective aims to demonstrate that the country can sustain orderly public accounts without compromising spending on vulnerable sectors, a balance that the IMF considers key to long-term macroeconomic stability.
In addition, gradual modifications are planned in the tax, pension and fiscal systems. These structural reforms seek to expand the tax base and improve collection without generating additional pressure on the formal private sector.
What will monetary and exchange policy be like in the coming months?
The IMF document indicates that measures will be implemented to strengthen the operations of the financial system. The objective is to reduce the volatility of interest rates and improve the transmission of monetary policy to the rest of the economy.
Monetary policy will remain with a restrictive bias. This implies that the BCRA will continue to prioritize lowering inflation over other objectives, such as credit expansion or stimulating consumption.
In exchange matters, a scheme of expanded bands will continue. The organization mentioned that quarterly reports will be published on the fulfillment of monetary objectives, as a mechanism of transparency and accountability.
Argentina must add US$8 billion to reserves during 2026
The agreement establishes as a goal a increase of at least US$8,000 million in net international reserves during 2026. This figure represents almost double what the country accumulated so far this year.
To achieve this objective, it is planned to obtain financing in foreign currency and the continuity of foreign currency purchases by the Central Bank. The estimated purchase floor is US$10,000 million during the year.
These goals imply that Argentina must maintain a robust trade surplus and avoid capital outflows that erode the accumulation of reserves. The IMF considers this cushion to be essential to face possible external shocks.
What instruments will the country use to refinance debt in dollars
The financing scheme includes different tools to refinance obligations in foreign currency. Among them are the issuance of debt in dollars under local legislation, the sale of state assets, repurchase agreements from the Central Bank and obtaining external loans.
These mechanisms seek to diversify financing sources and reduce dependence on a single instrument, with possible participation of international financial organizations in addition to the IMF.
The strategy aims to enable Argentina to access the capital market under more favorable conditions as its macroeconomic indicators improve. The goal is that, sometime in 2026, the country will once again issue bonds at competitive rates.
What structural reforms do the IMF program foresee?
The IMF staff report indicates that the ongoing reforms are aimed at sectors such as formal employment, the development of the local capital market, private investment and productivity. Reference is also made to the potential of activities such as agriculture, energy, mining and the knowledge economy.
These measures seek to balance the objectives of disinflation, external stability and growth. The IMF estimates that a more predictable regulatory framework It will facilitate access to financing in the capital markets under more favorable conditions.
The organization highlighted that the strengthening of the monetary and exchange framework contributed to the improvement in international reserves. This occurred in a context in which Argentina maintains its status as a net energy exporter, a factor that the report values as positive for the generation of foreign currency.
What’s next with the IMF review
The Argentine Government expressed its intention to continue with the objectives of the program and to adopt additional measures if necessary. This will be subject to the evolution of local and international economic conditions.
The organization noted that Argentina continues to face the impact of the international context, including the conflict in the Middle East. These external factors could require adjustments in strategy if conditions change significantly.
Once the pending measures are completed, The review will be submitted to the IMF Executive Board for final evaluation. Only after that instance will the disbursement of the US$1 billion agreed at a technical level be finalized.
