IMF, Argentina reach funding agreement that could unlock $6 billion

BUENOS AIRES (Reuters) -The International Monetary Fund (IMF) said on Friday it has reached a agreement with Argentine authorities on a third review under its Extended Fund Facility Arrangement, which could give the South American country access to around $6 billion.

The IMF said in a statement the staff-level agreement remained subject to approval by its executive board, expected to meet this month.

The fund said the country was presenting a prudent macroeconomic management and efforts to mobilize external financing.

It said that the actions were supporting macroeconomic stability: “Fiscal order is being restored, inflation is moderating, the trade balance is improving, and reserve coverage is being strengthened,” it added.

IMF said its program objectives remain unchanged during the remainder of 2022 and 2023, and highlighted the importance of “continued decisive policy implementation” as domestic and external environments become more challenging.

Latin America’s third largest economy signed an agreement with IMF in March to refinance a debt for $44 billion, a deal that set targets around the country’s central bank reserves and the financing of the fiscal deficit.

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