IMF staff, Argentina reach agreement on latest review of $44 billion program

Police officers stand in front of the National Congress as the senate debates the government's agreement with the International Monetary Fund (IMF), in Buenos Aires, Argentina March 17, 2022. Agustin Marcarian/File Photo

Staff of the International Monetary Fund (IMF) and Argentine authorities have reached an agreement on the eighth review of the country's $44 billion extended fund facility arrangement, the Washington-based lender said on Monday.

The IMF said the decision followed better-than-expected first-quarter performance in Argentina.

Argentine President Javier Milei took office in December vowing to tackle triple-digit inflation, contracting economic activity and reserves in the red. He rolled out a sweeping fiscal reform, tightening the federal government's belt.

Milei's plan "has resulted in faster-than-anticipated progress in restoring macroeconomic stability and bringing the (IMF) program firmly back on track," the body said.

Authorities agreed that Argentina would continue to work to reach fiscal balance without net central bank financing, the IMF said. Meanwhile, foreign-exchange policy will become more flexible as conditions allow, among other tweaks to the agreement.

The terms must now be approved by the IMF executive board, which is expected to discuss the subject in coming weeks, it added.

Source: Reuters