The International Monetary Fund (IMF) is considering supporting Argentina with a stand-by agreement in 2025 to refinance its debt. This measure is expected to facilitate the country in refinancing its debt services in the short term. The possibility of a more robust agreement with net disbursements in 2026, subject to conditions such as correcting the appreciation of the peso and the accelerated exit from the capital controls, is suggested after the elections.
A recent visit from an IMF mission to Buenos Aires led by the Deputy Director for the Western Hemisphere and other members of the technical team was conducted in a constructive and positive manner. The delegation held talks with Argentine officials, including the Minister of Economy, Luis Caputo, who returned early from Switzerland to participate in these discussions.
The aim of the meetings is to establish a new program that will replace the Extended Fund Facility that expired last December. Once defined, the program must be approved by the IMF board. The funds from the agreement are expected to be used to redeem Treasury debt and bolster reserves, contributing to restoring the confidence of local and foreign investors.
Despite some doubts related to the conditionality of the agreement, public signals from both parties indicate a positive outcome. Although some prefer to receive the disbursements in full, it is possible that they will be made in parts, as is customary in these programs. With the possibility of a cheaper dollar, it is suggested that IMF support would strengthen Argentina's external liquidity position.
