IMF calls on Argentina to maintain policies as growth concerns persist

The International Monetary Fund said on October 29 that Argentina should continue implementing its economic program to reduce country risk, while broadening the benefits of stabilization through growth and job creation. IMF spokeswoman Julie Kozack said stronger external finances and the accumulation of net international reserves were essential to that goal.

IMF staff and Argentine authorities have agreed on the third review of the Extended Fund Facility program. The agreement would permit a disbursement of about US$900 million, with consideration by the Fund’s board possible in early December, Kozack said at a Washington briefing.

In response to a question about a possible two-quarter economic contraction, Kozack described four measures agreed with the government. They involve developing capital and mortgage markets, increasing labor market flexibility, advancing infrastructure concessions that were recently awarded, and facilitating strategic investment through the Incentive Regime for Large Investments (RIGI). Approved RIGI projects exceed US$76 billion, the Fund said.

The IMF reported that net reserves surpassed the June target by about US$4 billion. It also said the Central Bank had bought nearly US$16 billion in 2026 and the Treasury had raised more than US$5 billion through local markets.

Under the agreement, Argentina retains its exchange rate band system and a primary surplus target for 2026 of 1.4% of GDP, with a similar effort envisaged for 2027. The IMF’s October forecast put 2026 growth at 2.1%, compared with its previous projection of 3.5%.