The International Monetary Fund (IMF) has cleared the way for Argentina to withdraw $800 million to aid its economic recovery, announcing that the lending program is "firmly on track."
Argentina has a $44 billion program with the IMF, which includes economic targets related to growth, inflation and foreign exchange reserves.
The IMF stated in a statement that its Executive Board completed the eighth review of that arrangement, reports SEEbiz.
"Completing the audit, the Executive Board assessed that the program is firmly on the right track, with all quantitative performance criteria met by the end of March this year," announced the IMF.
The IMF added that maintaining this progress will require improving the quality of fiscal adjustment, taking steps towards an improved monetary and foreign exchange policy framework, and implementing reforms for growth.
The Argentine Government has announced that it will start talks with the IMF about a new program.
The IMF approval comes after Argentina's president, Javier Miley, who took office in December, implemented sweeping fiscal reforms and sharply curbed government spending to tackle triple-digit inflation, a shrinking economy and negative foreign exchange reserves.
The changes he introduced helped Argentina restore depleted foreign exchange reserves, achieve fiscal surpluses at the beginning of the year and stabilize its currency.
Argentina's monthly inflation rate in May was the lowest since 2022, official data showed on Thursday, easing for a fifth straight month to 4,2 percent, thanks to austerity measures.
However, the government there is facing challenges, as the economy is stalling and the level of poverty is rising. On Wednesday, protests erupted in the capital over further reforms that foresee budget cuts.
Bonus video:
