IMF to approve a US$1 billion disbursement for Argentina next week

An International Monetary Fund (IMF) Executive Board meeting and the required “board approval” next week will unlock a US$1 billion disbursement to Argentina, IMF spokesperson Julie Kozack said during a press conference held on Thursday in Washington, D.C.  She did not provide a specific date, although it is estimated that the transfer could take place next Wednesday.  Argentina is expecting this disbursement following the technical approval of the second review of the US$20 billion Extended Fund Facility program signed in 2025. The technical agreement required for that approval was announced on April 15 during the IMF and World Bank Spring Meetings in Washington. The New IMF Disbursement Kozack stated that the agreement focused “on policies to appropriately balance disinflation, external stability, and growth objectives for Argentina.” She added that “this is meant to support timely and durable re-access to international capital markets.” The spokesperson once again highlighted Argentina’s program. “The authorities’ stabilization plan continues to yield important results. Reform momentum has gathered steam recently, and Argentina was recently upgraded by one credit rating agency, so that has supported a further reduction in Argentina’s spreads.” She also emphasized the balanced-budget policy defended by the government, noting that “the authorities have demonstrated a strong and unwavering commitment to a zero-balance fiscal anchor.” According to the IMF, this fiscal anchor “is something that we see critical to underpinning the decline in inflation and restoring confidence and macroeconomic stability.” In addition, Kozack recalled that “Argentina has also seen a significant reduction in poverty rates, which are now below 30%, and that’s a seven-year low.” She added that pertaining documents, like the press release and the staff report, will be released following the board meeting. In this way, she left unanswered questions regarding the impact on investors of the allegations of illicit enrichment involving Chief of Staff Manuel Adorni, the economy ministry’s external financing strategy, and cuts to education spending. Commitment Both Argentine authorities and IMF officials have repeatedly stated that the commitment between the two parties “is very close.” On several occasions, the multilateral organization has praised the reforms implemented by Javier Milei’s administration. Recently, the Argentine government once again turned to the United States to meet commitments with the IMF. At the end of last month, the Treasury purchased Special Drawing Rights (SDRs) equivalent to US$819 million from the Exchange Stabilization Fund (ESF), which depends on the U.S. Treasury, in order to make an interest payment under the current IMF program. Although the IMF maintains a positive outlook on the Argentine economy, last month it lowered its 2026 growth forecast to 3.5% (down from a previous estimate of 4%) due to weaker economic momentum in the second half of last year.  It also revised its inflation forecast upward to 30.4% by the end of 2026.This story was originally published in Ambito