IMF and Argentina Strike $20 Billion Agreement Amid Economic Challenges

The International Monetary Fund and Argentina reached a staff-level agreement on a $20 billion, 48-month extended fund facility. This deal aims to stabilize Argentina's economy with strong fiscal measures, rapid disinflation, and economic recovery. The agreement awaits IMF board approval.

The International Monetary Fund announced on Tuesday that it had reached a staff-level agreement with Argentina for a 48-month extended fund facility worth $20 billion.

According to the IMF, this agreement—pending approval from its executive board—builds on Argentina's commendable progress in stabilizing the economy. The arrangement aims to enhance fiscal discipline and is expected to foster rapid disinflation and a resurgence in economic activity and social indicators.

The deal is crucial for Argentina as it seeks to alleviate capital controls that hinder investment and address its dwindling foreign currency reserves amidst high inflation. An IMF source stated that details on the first disbursement would be revealed once the board reviews the proposal. Libertarian President Javier Milei took to X to commend his Economy Minister, Luis Caputo, following the announcement.

(With inputs from agencies.)