IMF completes second review of Argentina's $20bn EFF, releasing about $1bn despite missed reserves target
On May 21, 2026 the IMF Executive Board completed the second review of Argentina's roughly $20 billion Extended Fund Facility and concluded the 2026 Article IV consultation, enabling an immediate disbursement of about $1.
VERDICT — CONFIRMED
On May 21, 2026 the IMF Executive Board completed the second review of Argentina's roughly $20 billion Extended Fund Facility and concluded the 2026 Article IV consultation, enabling an immediate disbursement of about $1 billion (SDR 0.8 billion) and bringing total disbursements under the arrangement to about $15.8 billion. Per the IMF release and corroborating coverage from the Buenos Aires Herald and Rio Times, the approval delivered political validation for President Javier Milei's reform agenda, which markets had second-guessed in April and early May. The Fund projected 2026 GDP growth of 3.5% and lifted its inflation projection to 30.4%.
Argentina again fell short of its net international reserves accumulation target set for end-2025—for the second consecutive review—but the Board accepted corrective measures and approved the review anyway. IMF Managing Director Kristalina Georgieva credited authorities with 'strong progress in stabilizing and creating a more market-based economy.' As a precondition for the program's earlier approval, the government had committed to let the peso float within a band of 1,000-1,400 per U.S. dollar and to dismantle current- and capital-account exchange restrictions; the Rio Times account focused on the disbursement and reserves shortfall, while the Buenos Aires Herald emphasized the board's endorsement. The Atlantic Council situated the move within the broader $20 billion rescue announced in April 2025.
The disbursement is incremental program financing, not new money, and the persistent reserves shortfall remains the program's central vulnerability heading into subsequent reviews.
