Argentina and the International Monetary Fund announced a staff-level agreement Wednesday on a 36-month, $20 billion Extended Fund Facility, the largest individual program in the IMF's history. The package will replace the $44 billion 2018 EFF and a $7.4 billion 2022 augmentation. Disbursements are scheduled to begin in late May, contingent on approval by the IMF's Executive Board, expected at a May 22 meeting.
The program is centered on consolidating President Javier Milei's fiscal-discipline drive — which delivered a primary surplus of 1.7% of GDP in 2025 — and dismantling the residual capital-control architecture known locally as the "cepo." Argentina committed to lifting remaining FX restrictions by the end of Q4 2026, restoring full peso convertibility for the first time since President Mauricio Macri's last days in office in 2019. The agreement also targets headline CPI of less than 18% by Q4 2026, down from 38% currently.
Reserve Accumulation Path
A second pillar is the reconstitution of the central bank's net international reserves. The agreement targets gross reserves of $80 billion by mid-2027, up from $40 billion currently. The $20 billion fresh IMF disbursement, combined with $4 billion from the World Bank, $3.5 billion from the Inter-American Development Bank, and a $2 billion repo facility from CAF, would add $29.5 billion of reserve firepower over 24 months.
IMF Managing Director Kristalina Georgieva described the agreement as "exceptional in scope and conditionality," noting Argentina's fiscal performance "exceeded all program expectations" through 2025. Economy Minister Luis Caputo said the deal "completes the macroeconomic adjustment" and would allow the lifting of remaining FX restrictions on Argentina's 4.7 million corporates and 47 million individuals.
Market Reaction
Argentine sovereign bonds rallied sharply: the 2030 dollar-denominated benchmark gained 4.2 cents on the dollar to 81.4, the highest level since the country's 2020 restructuring. The MSCI Argentina ETF (ARGT) climbed 7.8% in pre-market trade, outpacing peer EM ETFs. The blue-chip MERVAL index opened up 4.6%. The official peso strengthened to ARS 1,058 per dollar from 1,072, while the parallel "blue dollar" rate narrowed to a 6% gap from 11%.