IMF Holds Off Approval of Argentina’s Economic Program, President Milei Faces Uphill Battle to Avoid Default

In April, the IMF reported that Argentina had met program targets with “important margins,” although some imbalances persisted. However, this agreement still needs approval from the IMF executive board.

Libertarian President Javier Milei, who took office last December, inherited a significant economic crisis characterized by high inflation and the ongoing depreciation of the local currency. The government has not made any efforts to secure private sector financing.

Argentine Economy Minister Luis Caputo announced on Wednesday that discussions with the International Monetary Fund (IMF) regarding a new debt program will commence soon. He emphasized that the government has not made any efforts to secure private sector financing. Caputo also mentioned that he anticipates the government to have achieved a fiscal surplus in April, pending the release of official budget data, following the surplus in the first quarter.