IMF Reaches Agreement to Bolster Argentina's Economy

The International Monetary Fund has agreed on the first review of its extended fund facility with Argentina, potentially unlocking $2 billion. The program has achieved strong initial progress, with reduced inflation and poverty, while Argentina has accessed international markets sooner than expected.

The International Monetary Fund announced on Thursday that it has reached a staff-level agreement regarding the first review of its extended fund facility with Argentina. This development could potentially release $2 billion to support the struggling Latin American economy.

The IMF stated that an executive board meeting for the review, which is part of Argentina's $20 billion loan program, is anticipated for later this month. Despite facing a more challenging external environment, the program has reportedly commenced effectively, achieving a reduction in both inflation and poverty, alongside modest growth.

The fund noted that Argentina has re-entered international capital markets ahead of expectations. Additionally, Argentina has made commitments to secure its fiscal fundamentals, enhance reserves, and sustain the decrease in inflation.

(With inputs from agencies.)