IMF Clears Argentina Review, Releases $1 Billion to Milei

Argentina · Economy

The International Monetary Fund cleared its second IMF review of Argentina’s program on May 21, releasing $1 billion and endorsing President Javier Milei’s reforms even as the country again missed a key reserves target.

What did the IMF review approve?

The Fund’s executive board completed the second review of Argentina’s Extended Fund Facility, the $20 billion program signed in April 2025, and authorized an immediate transfer of about $1 billion. That brings total disbursements under the arrangement to roughly $15.8 billion, following an initial $12 billion and a further $2 billion released after the first review.

The board praised what it called impressive progress on deregulation and reform legislation across fiscal, trade and labor policy, linking it to a significant rise in foreign direct investment. It also urged Buenos Aires to safeguard the independence of oversight institutions and improve transparency in procurement and privatizations.

Why did Argentina pass despite missing a target?

Argentina did not meet the net international reserves goal set for the end of 2025, the second time it has fallen short on that measure. The Fund said most other key performance criteria were met and that corrective steps had been taken to move reserves toward the target and narrow sovereign spreads.

Managing director Kristalina Georgieva struck a sympathetic tone on the shortfall, crediting authorities with steady progress toward stabilization and a more market-oriented economy. The Fund also called for measures to improve the quality of inflation data, a sensitive point after a methodology dispute led to a change at the national statistics agency early in 2026.

What are the new projections for 2026?

In its accompanying report, the Fund projected the economy would grow 3.5 percent in 2026, a half-point cut from an earlier estimate, supported by continued spending restraint and subsidy reform. It nearly doubled its inflation forecast to 30.4 percent, while expecting the central bank to add about $8 billion to reserves over the year as financial inflows recover.

Frequently Asked Questions

How much did the IMF disburse?

The board released about $1 billion after approving the second review. That lifts total disbursements under the $20 billion program to roughly $15.8 billion.

What target did Argentina miss?

It fell short of the net international reserves goal for the end of 2025, the second consecutive miss. The Fund accepted corrective measures and approved the review anyway.

What is the IMF’s inflation forecast?

The Fund raised its 2026 inflation projection to 30.4 percent, up sharply from an earlier 16.4 percent. It trimmed its growth forecast by half a point to 3.5 percent.

How big is the overall program?

The Extended Fund Facility is worth $20 billion and was signed in April 2025. It is a 48-month arrangement, separate from older Argentine programs with the Fund.

What did the IMF want improved?

It asked for better inflation-data quality and stronger institutional independence, transparency in privatizations and procurement, and continued reserve accumulation to manage external risks.

Connected Coverage

The disbursement reinforces the fiscal program behind the tax relief detailed in our coverage of Milei’s export-duty cuts, and the investor optimism traced in our reporting on the Argentine market rally.