A senior official from the International Monetary Fund emphasised Thursday that Argentina should invest more and create more jobs with the money it has saved from financial stabilisation. Julie Kozack, the head of IMF communications, urged President Javier Milei’s administration to transform its economic gains into stronger growth. This week, an IMF technical team reached an agreement with Buenos Aires regarding the third review of Argentina’s four-year lending program, clearing the way for a disbursement of approximately US$900 million. The IMF approved Argentina’s massive Extended Fund Facility program in April 2025, which is worth $20 billion. “In our discussions with the Argentine authorities, there was a shared understanding of the importance of expanding the gains from stabilisation achieved so far into stronger growth and job creation,” Kozack said.
The Argentine government under President Javier Milei has been lauded by the International Monetary Fund for its “impressive” macroeconomic performance, which includes measures to curb inflation and the deficit as well as significant cuts to public spending. The Fund has also brought attention to the difficulty of turning those profits into jobs. Business group the Argentine Industrial Union recently revealed a loss of about 90,000 employment since August 2023. During his speech, Kozack outlined four areas where the government and the IMF have reached a consensus on the need for action in order to prolong the stabilisation benefits. These areas include: expanding access to finance through deepening mortgage and capital markets; encouraging private-sector job creation through increasing labour market flexibility; advancing recently awarded infrastructure concessions; and facilitating strategic investments approved under Milei’s flagship RIGI investment incentive scheme for major investors.
The investment incentive system has authorised projects worth over US$70 billion, according to Kozack. The initiatives aim to enhance growth and employment in the long run, complementing labour and market reforms that were passed earlier this year. To improve Argentina’s standing in the international community and lower its country risk premium rating, the International Monetary Fund has stressed the importance of maintaining a healthy stock of foreign currency reserves. According to Kozack, the government has promised to keep developing the monetary policy framework and is still dedicated to maintaining a zero overall balance as a budgetary anchor.
This, she argued, would aid in the “remonetisation” of the economy, better liquidity management, and most importantly, the efficient delegation of credit. “The overall message on Argentina is to stay the course with strong policies and reforms that support investment, financing and job creation,” Kozack said. This should help the country build resilience and achieve stronger, more durable growth over time. In early December, the most recent program review will likely be considered by the IMF’s Executive Board. The extra payout of US$900 million would be unlocked upon approval.
