IMF reaches Argentina review agreement, putting $900 million tranche in reach

The International Monetary Fund reached a staff-level agreement with Argentina on October 27 on the third review of its $20 billion financing programme, potentially releasing about $900 million to President Javier Milei’s government. The IMF Executive Board must approve the review before the money can be disbursed.

The agreement advances a 48-month arrangement signed in April 2025. Argentina is the IMF’s largest debtor, with about $56.8 billion owed to the Fund, the Buenos Aires Times reported. AFP reported that $1.2 billion is due in 2026 and another $7.8 billion in 2027, putting the prospective tranche alongside substantial near-term repayments.

Argentina’s fiscal and currency commitments

AFP reported that the IMF identified deeper domestic capital markets and wider access to longer-term financing as reform priorities. The Fund also cited changes in trade, labour, investment and capital markets in its assessment of Milei’s programme. His spending cuts have prompted frequent protests, AFP reported.

Reserve gains and a weaker growth forecast

The IMF said net international reserves exceeded the programme’s end-June target by about $4 billion. The Buenos Aires Times reported that Argentina’s central bank had bought nearly $16 billion in foreign currency so far in 2026, while the Treasury had raised more than $5 billion in foreign currency through domestic markets.

The Fund described the programme as delivering ‘impressive results’ and highlighted $76 billion in approved investments under Milei’s RIGI incentive scheme. It said carrying out those investments was expected to support growth and jobs over time.

The IMF’s October World Economic Outlook lowered its forecast for Argentina’s 2026 growth to 2.1% from 3.5% and raised its inflation projection to 32.5%, according to the Buenos Aires Times. AFP reported weak consumer activity and said mortgage defaults had tripled over the preceding year to 12.8%, a 20-year high. It also reported that inflation had fallen from triple-digit levels when Milei took office in December 2023.