Argentina Secures $20 Billion IMF Program, Approval Expected in Weeks
Argentina’s Economy Minister Luis Caputo announced on Thursday that the country has reached a preliminary agreement with the International Monetary Fund (IMF) for a $20 billion program, Bloomberg reports.
While stopping short of formally announcing a staff-level agreement, Caputo provided the most concrete detail to date after months of negotiations between the IMF and President Javier Milei’s administration.
Caputo revealed the amount during a conference, stating that he had spoken with IMF Managing Director Kristalina Georgieva, and they had agreed to announce the figure due to recent market volatility and speculation surrounding the deal.
Caputo also indicated that funds combined from the IMF, Inter-American Development Bank, and regional bank CAF would boost Argentina’s central bank reserves to nearly $50 billion. Current reserves stand at $26.2 billion.
The announcement triggered a positive market reaction, with Argentina’s dollar bonds climbing to session highs. Benchmark notes due in 2035 rose as much as 0.6 cents to trade around 65 cents on the dollar.
Investors are now keenly awaiting details on the initial disbursement amount upon IMF board approval, which Caputo anticipates will take several weeks. The timing is critical, as Argentina faces no principal repayments to the IMF from previous programs until September 2026. IMF rules permit countries to repay principal debt owed to the fund using new cash from the lender, but this cannot be used for interest payments.
