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

ARGENTINA REQUEST FOR AN EXTENDED ARRANGEMENT UNDER THEEXTENDED FUND FACILITY—PRESS RELEASE;STAFFREPORT;STAFF SUPPLEMENT;AND STATEMENT BY THEEXECUTIVE DIRECTOR FOR ARGENTINA In thecontext of theRequest for anExtended Arrangement Under the Extended Fund Facility,the following documents have been released and are included in this package: •APress Releaseincluding a statement by the Chair of the Executive Board.•TheStaff Reportprepared by a staff team of the IMF for the Executive Board’sconsideration onApril 11, 2025, following discussions that endedinMarch 2025, with theofficials ofArgentinaon economic developments and policies underpinning the IMFarrangement under theExtended Arrangement Under the Extended Fund Facility. Based oninformation available at the time of these discussions, the staff report was completed onApril 7, 2025.•AnAssessment of the Risks to the Fund and the Fund’s Liquidity Position.•AStaff Supplement,updating information on recent developments.•AStatement by the Executive DirectorforArgentina. TheIMF’s transparency policy allows for the deletion ofmarket-sensitive information andpremature disclosure of the authorities’ policy intentions in published staff reports and otherdocuments. Copies of this report are available to the public fromInternational Monetary Fund•Publication ServicesPO Box 92780•Washington, D.C. 20090Telephone: (202) 623-7430•Fax: (202) 623-7201E-mail:publications@imf.orgWeb:http://www.imf.org International Monetary FundWashington, D.C. IMF Executive Board Approves 48-month US$20 billionExtended Arrangement for Argentina FOR IMMEDIATE RELEASE •The IMF Executive Board approved a 48-month Extended Fund Facility (EFF) arrangementfor Argentina totaling US$20 billion (or 479 percent of quota), with an immediatedisbursement of US$12 billion, and a first review planned for June 2025 with an associateddisbursement of about US$2 billion. The program is expected to help catalyze additionalofficial multilateral and bilateral support, and a timely re-access to international capitalmarkets. •Building on the authorities’ strong track record, the arrangement supports the transition to anew phase of their stabilization and growth plan to entrench macroeconomic stability,strengthen external sustainability, and deepen structural reforms to create a more open andmarket-oriented economy. •Policy priorities will center on sustaining a strong fiscal anchor, transitioning to a morerobust monetary and FX regime, with greater exchange rate flexibility, and advancingreforms to foster productivity, competitiveness, and growth. Washington, DC–April 11, 2025:The Executive Board of the International Monetary Fund(IMF) approved today a 48-month extended arrangement under the Extended Fund Facility(EFF) for Argentina amounting to SDR 15.267 billion (equivalent to about US$20 billion, or479 percent of quota). The Executive Board’s decision allows the authorities an immediatedisbursement of SDR 9.2 billion, equivalent to about US$12 billion, to be followed by a firstreview planned for June 2025 with an associated disbursement of about US$2 billion. Thenew arrangement follows a request by the Argentine authorities for medium-term balance ofpayments assistance to support the next phase of their stabilization and reform agenda. Theprogram is expected to catalyze further official financing from multilateral sources —notablyfrom the World Bank Group and IDB—and bilateral sources, and seeks to facilitate a timelyreturn to international capital markets. The authorities’ IMF-supported program aims to consolidate the impressive initial gains fromrecent policy efforts—anchored by strong fiscal and monetary adjustment and deregulationefforts—while addressing Argentina’s remaining macroeconomic vulnerabilities. The programsupports a path toward entrenching macroeconomic stability, strengthening externalsustainability, and laying the foundation for stronger and more resilient growth. Key pillars of the program include maintaining a strong fiscal anchor, transitioning towards amore robust monetary and FX regime, with greater exchange rate flexibility in the context of agradual easing of FX restrictions, and advancing a broad range of structural reforms to fostera more dynamic, market-oriented economy. Continued steadfast policy implementation andstrong contingency planning will be critical to secure program success, especially givenelevated and rising global risks. Following the Executive Board discussion, Ms. Kristalina Georgieva, Managing Director andChair, made the following statement: “The Argentine authorities’ decisive implementation of their stabilization plan, centered on astrong fiscal anchor and broad structural reforms, has yielded rapid disinflation, a solideconomic recovery, and incipient improvements in social indicators. Despite this earlyprogress, Argentina continues to face vulnerabilities and structural challenges, includinglimited external buffers to address elevated and rising global