LatinNews Daily - 04 August 2025

*The International Monetary Fund (IMF) has confirmed that it has lowered Argentina’s international reserves target following the first review of its Extended Fund Facility (EFF) arrangement. The IMF’s executive board agreed to disburse US$2bn to Argentina following the review, noting that programme implementation has been strong “despite a more challenging global backdrop”, which it said reflected “appropriately tight policies”. While the IMF noted that Argentina had missed the mid-June target for net international reserves accumulation, it said that other key performance criteria and targets were met, and corrective measures had been implemented to bring reserves closer to the target. Due to this and following requests from Argentina’s government led by President Javier Milei, the IMF revised down its international reserve target, meaning Argentina will now need to raise net hard-currency reserves to negative US$2.6bn by the end of this year, some US$5bn lower than the original target of US$2.4bn, to unlock the next tranche of IMF funds. The figure is currently at negative US$6.4bn. Targets following subsequent reviews have also been lowered, with the target only expected to get back on track by the end of 2027.

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