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Reuters
01-08-2025
- Business
- Reuters
IMF lowers bar for Argentina reserves accumulation, next review due after local October elections
NEW YORK, Aug 1 (Reuters) - The International Monetary Fund lowered the bar for Argentina's reserve accumulation targets through 2026 in its $20 billion program and removed a review that was due before the country's October legislative elections as detailed in a report published Friday. Net international reserves accumulation targets were lowered through 2026, leading to a steeper accumulation curve as the 2027 target was kept in place. "The NIR accumulation target for end-December 2025 has been lowered to mainly reflect the initial shortfalls, which are gradually being addressed through the agreed corrective actions," the report said. The announcement came a day after the IMF board completed the first review of the $20 billion program approved in April. Disbursements of around $14 billion have been made for Argentina so far as part of this new program. "While early efforts to re-access international capital markets are commendable, Argentina's capacity to repay its Fund obligations remains subject to exceptional risks and continues to hinge on strong policy implementation to improve reserve coverage and sustain market access (at more favorable terms) by the time repayments to the Fund come due," said the report from IMF staff.
Reuters
31-07-2025
- Business
- Reuters
IMF board completes first Argentina program review, approves $2 billion disbursement
July 31 (Reuters) - The International Monetary Fund board on Thursday completed its first review of the $20 billion program with Argentina, approving a disbursement of approximately $2 billion. "Strong policy implementation has supported a smooth transition to a more flexible exchange rate regime, with declining inflation and continued economic growth," the IMF said in a statement, while acknowledging Argentina missed its mid-June target for net international reserves accumulation. The IMF staff said last week that understandings had been reached with the government on policies including safeguarding the fiscal anchor and rebuilding reserves. 'This will be complemented by further actions to create a more open, resilient, and market-based economy,' the IMF staff said. In the wake of the $20 billion, 48-month deal Argentina reached with the IMF in April, the country loosened years-long controls that restricted access to foreign currency and has let the local peso fluctuate within a moving band.
