IMF and Argentina Reach Preliminary $20 Billion Bailout Agreement

The deal, pending IMF board approval, aims to bolster reserves, dismantle currency controls, and stabilize Argentina's fragile economy.

The IMF announced a staff-level agreement with Argentina on a $20 billion bailout, with final board approval expected in the coming days.
The agreement is a key step toward lifting long-standing currency controls, potentially as early as January 1, 2025, to encourage investment and global market reintegration.
President Javier Milei's austerity measures, including severe budget cuts and reduced inflation, laid the groundwork for the deal but have led to significant social hardship.
Argentina's foreign reserves remain deeply negative, and the bailout is seen as critical to addressing immediate liquidity challenges and stabilizing the peso.
Concerns persist that the bailout could increase Argentina's long-term debt burden if funds are primarily used to manage short-term crises.