International Monetary Fund (IMF) staff and Argentine authorities have reached a staff-level agreement on the first review of Argentina's economic reform program. This program is supported by a 48-month Extended Fund Facility (EFF) arrangement. If approved by the IMF Executive Board, Argentina will gain access to approximately US$2 billion.
The program has started strongly, with tight macroeconomic policies in place, including a strong fiscal anchor and tight monetary stance. The transition to a more flexible exchange rate regime and easing of most foreign exchange controls have been smooth despite external challenges. The official exchange rate remains stable, inflation continues to ease, economic expansion persists, and poverty levels have decreased. Argentina has also re-accessed international capital markets sooner than expected.
Agreements were made on policies aimed at maintaining the fiscal anchor, rebuilding reserve buffers, reducing inflation durably, and enhancing the clarity of the monetary framework. Further actions will be taken to create a more open and resilient market-based economy.
The IMF staff appreciates Argentina's commitment to the program. The IMF Executive Board meeting for this review is scheduled for late July.