IMF Agreement Boosts Argentina's Economic Prospects Amid Challenges

The International Monetary Fund (IMF) announced Thursday that it has reached a staff-level agreement for the first review of its extended fund facility with Argentina. This deal could unlock approximately $2 billion for the economically struggling nation.

According to the IMF, an executive board meeting will occur later this month to review Argentina's $20 billion loan program. The program has reportedly started strong despite challenging external conditions, with a decrease in inflation and poverty while overall growth shows positive signs.

Argentina has re-entered international capital markets sooner than expected, the IMF noted. The agreement encompasses strategies to maintain fiscal discipline, increase reserves, and continue reducing inflation. While the country opened more foreign currency access and allowed peso fluctuations, economic growth is anticipated to moderate with pending midterm elections.

(With inputs from agencies.)