The IMF approved the technical review of the loan with Argentina and the board of directors will approve a new disbursement.

After several weeks of meetings and dialogue between Argentine authorities and technical staff from the International Monetary Fund (IMF), the financial institution approved the technical review of the agreement with Argentina and will prepare a new disbursement, this time for $2 billion.

" IMF staff and Argentine authorities reached a staff-level agreement on the first review of Argentina's economic reform program, supported by the IMF's 48-month Extended Fund Facility (EFF)," the Fund reported, adding that the next disbursement was now in the hands of the Board of Directors for approval.

The Fund stated that the program "had a solid start despite the complex external context." "With continued deflation and growth, poverty has been reduced, and Argentina has rejoined the international capital markets. All ahead of schedule," they stated. One of the measures highlighted by the IMF was the easing of the exchange rate controls and the introduction of a floating dollar scheme.

The IMF's officials considered the new arrangement to be a "transition to a more flexible exchange rate regime" and that the currency's price remained near the midpoint of the established floating band. "Agreements were reached on policies aimed at safeguarding the fiscal anchor, rebuilding reserves, sustainably reducing inflation, and continuing to improve the clarity and functioning of the monetary framework," the IMF stated.

IMF spokesperson Julie Kozack announced on Tuesday that negotiations between Argentina and the Fund "were very advanced," during an informal meeting between the organization's executives and the technical team that reviewed the country's progress. Kozack indicated that the "continued implementation of restrictive macroeconomic policies, including a strong fiscal anchor and restrictive monetary policy, supported the program."

During the roundtable discussions, the program's initial goals were analyzed, including indicators such as the primary surplus and reserve accumulation . While Javier Milei 's administration managed to maintain the primary surplus, the second point complicated the review because the Central Bank fell $4 billion short of the target.