IMF Board Completes First Review of Argentina's Program and Approves $2 Billion Disbursement

The IMF (International Monetary Fund) board concluded its first review of the US$20 billion program with Argentina on Thursday (31), approving a disbursement of approximately US$2 billion.

"Strong policy implementation has supported a smooth transition to a more flexible exchange rate regime, with declining inflation and continued economic growth," the IMF said in a statement, acknowledging that Argentina had missed its net accumulation of international reserves target by mid-June.

The IMF team said last week that understandings had been reached with the government on policies that include protecting the fiscal anchor and replenishing reserves.

"This will be complemented by other actions to create a more open, resilient and market-based economy," IMF staff said.

In the wake of Argentina's $20 billion, 48-month deal with the IMF in April, the country led by liberal Javier Milei loosened years-old controls that restricted access to foreign currency and allowed the local peso to fluctuate within a moving band.