Argentina: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Argentina

International Monetary Fund

No 2025/095, IMF Staff Country Reports from International Monetary Fund

Abstract: Inheriting an economy on the verge of a balance of payment crisis, the Milei administration implemented a stabilization plan centered on a strong fiscal anchor, an initial large step devaluation (followed by a crawling peg), and an ambitious deregulation agenda. This has yielded a rapid disinflation, the first primary surplus in almost two decades, an initial turnaround in reserves, and a strengthened balance sheet of the central bank, all of which contributed to sharply lower sovereign spreads. Despite the adjustment, the economy and real wages have been recovering since mid-2024, supporting rapid improvements in social indicators. Nevertheless, Argentina’s vulnerabilities and challenges are substantial, as external buffers remain very weak, inflation is still elevated, and many structural impediments to investment and employment persist. Recognizing remaining challenges and sharply rising global risks, the authorities are requesting medium-term balance of payments assistance under a new Extended Fund Facility (EFF) arrangement to address Argentina’s weak balance of payments position, maintain external and internal stability and create conditions for stronger and more sustainable growth.

Pages: 138
Date: 2025-04-11
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=566151 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2025/095

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().