International Monetary Fund spokesperson Julie Kozack announced that the Fund’s technical mission is set to conduct the second review of the agreement established with Argentina last year. She also emphasized that the Central Bank has been accumulating reserves “at a faster than anticipated pace” since the beginning of the year. “We are also very encouraged by the authorities’ ongoing action to rebuild reserves.” Recent adjustments to the monetary and foreign exchange frameworks, including the introduction of a pre-announced foreign exchange reserve purchase program, support these actions, Kozack noted. She indicated that Argentina had “begun the year on a robust footing,” while also highlighting advancements on the macroeconomic front.
“Continued progress in stabilization efforts is contributing to an improvement in market sentiment in Argentina,” she stated, noting that following the contraction in 2024, a growth rate of 4.5% is anticipated in 2025. Simultaneously, she highlighted that inflation decreased from triple-digit figures in 2024 to “around 30%” by the conclusion of 2025, marking the lowest rate in eight years. Official data released the day prior to the conference indicated that full-year inflation for 2025 reached 31.5%. She refrained from mentioning — even when prompted — the recent acceleration of the consumer price index, which recorded a December figure of 2.8%. Kozack remarked on reserve accumulation: “While it is still early in the process.” Reserve accumulation has commenced the year at a quicker than expected rate.
The central bank’s reserve acquisitions have surpassed the 5% threshold of daily foreign exchange volume on the majority of days. The monetary authority has acquired US$515 million across eight trading sessions, leading to a total reserve increase of US$3.6 billion for the year to date, with US$3 billion attributed to a repo agreement with international private banks. Nevertheless, debt obligations amounting to US$4.3 billion were fulfilled concerning Global and Bonares bonds, alongside disbursements of approximately US$100 million to international organizations. Kozack also commended the endorsement of the 2026 Budget, “the first in two years,” highlighting that it incorporates “zero overall fiscal balance anchor for Argentina.”
This contributes to the initiatives designed to garner backing for legislation focused on diminishing labor market informality and enhancing labor market flexibility, she stated. The second technical review of the agreement between the IMF and Argentina, a US$20 billion deal known as an Extended Fund Facility that was signed last April, is scheduled for February. The discussion will encompass both the targets and the potential for granting waivers. The technical agenda remains under preparation, with details to be communicated upon finalization, she noted. The agreement between Argentina and the IMF did not result in the achievement of the reserve accumulation target, and the government is expected to seek a waiver, which the organization is likely to approve. In the last review conducted in July, the IMF had already eased its reserve accumulation target, while the fiscal target for a primary surplus of 1.3% of GDP is certain to be achieved, with the final December fiscal results set for release this Friday.