The International Monetary Fund (IMF) on Tuesday reached a staff-level agreement with Argentina on the third review of its bailout programme, potentially unlocking around $900 million in financial support. The disbursement requires approval from the IMF’s Executive Board.

In 2025, Argentina secured a four-year, $20 billion agreement with the IMF as it struggled with high inflation and a falling currency. Since taking office in December 2023, President Javier Milei has introduced sweeping reforms to cut public spending and control inflation. However, his government’s spending cuts, approved by the IMF, have triggered frequent protests.

Inflation has fallen from triple-digit levels to 33.5 per cent under Milei’s leadership. The IMF said on Tuesday that his reform programme had delivered "impressive results." It also noted improvements in fiscal buffers and foreign exchange reserves.

The fund praised the government’s structural reforms "in the areas of trade, labour, investment and capital markets," saying they were "enabling a more efficient and market-based economy."

As part of the latest agreement, Argentina committed to further fiscal and monetary measures. The government aims to achieve a primary surplus of 1.4 per cent of gross domestic product (GDP) this year and next.

The central bank will take steps to reduce inflation and build foreign exchange reserves while allowing exchange rates to move within a set band. The IMF also identified deepening domestic capital markets and expanding access to long-term financing as key priorities for future reforms.

Argentina remains the IMF’s largest debtor. It owes the fund $1.2 billion this year and another $7.8 billion next year.

Despite progress in controlling inflation, the country continues to face economic difficulties. Consumer spending remains weak, while loan defaults are rising sharply. Mortgage defaults have tripled over the past year to 12.8 per cent, their highest level in two decades.

Economic growth also remains slow. Earlier this month, the IMF lowered its forecast for Argentina’s GDP growth to 2.1 per cent in 2026.