By Natalia Siniawski
May 21 (Reuters) – The International Monetary Fund on Thursday approved a $1 billion disbursement to Argentina after completing a second review of its $20 billion programme, backing the government’s reform drive despite uneven progress.
The Fund noted that while the South American nation missed a year-end target for net international reserves, “strong progress” in passing fiscal, trade and labor legislation has helped stabilize the economy and deliver its first primary fiscal surplus in years.
Argentina reached an agreement with the IMF in April to unlock the $1 billion disbursement.
The four-year deal, signed a year ago, is the country’s 23rd with the Washington-based lender. It is designed to refinance a failed $44 billion program from 2018 while giving President Javier Milei’s government room to lift capital controls and regain access to international markets.
IMF directors said performance had been “mixed” through late 2025 due to delays in rebuilding reserves, a key pillar of the agreement. While recent policy changes have since boosted market confidence, the Fund warned that “remaining vulnerabilities” mean Argentina must continue to focus on disinflation and securing international market access.
Milei initially succeeded in bringing down inflation, but progress faltered in 2025 amid uncertainty linked to a midterm vote, which weighed on the economy.
Markets remain focused on the government’s efforts to rebuild depleted reserves. During the first review last July, the Fund lowered reserve accumulation targets through 2026 after the country failed to meet its initial goals.
(Reporting by Rishabh Jaiswal in Bengaluru and Natalia Siniawski in Mexico City; Editing by Sarah Morland and Sanjeev Miglani)