Argentina’s government is actively exploring a streamlined approach to negotiations with the International Monetary Fund (IMF) regarding its $44 billion financial program. Economy Minister Luis Caputo, speaking to investors in New York, indicated that the country might combine its last two staff-level reviews into a single session before initiating discussions on a new agreement that could potentially involve additional funds.
While Caputo did not disclose specific figures regarding the requested new financing, he emphasized the urgency of the talks, suggesting that a new program could be established within three to six months. However, he noted that no formal timeline has been set for these negotiations.
The IMF has acknowledged ongoing technical discussions with Argentine officials, yet progress has been slow. Earlier this month, IMF Western Hemisphere Director Rodrigo Valdes stepped back from leading negotiations, a move that followed criticism from President Javier Milei regarding the IMF’s policy perspectives.
Historically, Argentina has merged IMF reviews during periods of delay, raising questions about whether current IMF regulations would allow for such a course of action. The country is scheduled for its final two reviews in August and November, and while it has met its fiscal and monetary targets under the current program—an improvement over prior administrations that fell short—challenges remain. Notably, Argentina’s net international reserves are currently estimated to be around negative $5 billion, complicating efforts to lift currency controls and re-enter international markets.
In addition to navigating IMF discussions, Caputo reassured investors that the government has secured funds for upcoming interest payments on global bonds due in January. However, he indicated that principal payments are still under review, and the government does not plan to return to bond markets until January 2026. Furthermore, in response to declining inflation rates, the government plans to decelerate its currency crawling peg from the current rate of 2%.
