Argentina has reached a preliminary agreement with the International Monetary Fund (IMF) on a $20 billion bailout, providing relief to President Javier Milei’s austerity-driven economic agenda. The deal, pending approval from the IMF’s executive board, aims to stabilize Argentina’s troubled economy and ease foreign exchange controls.
Milei’s policies have reversed years of reckless borrowing by left-wing populist governments, which led to defaulting on debts and infamy for Argentina. The country has received more IMF bailouts than any other, with a total debt of over $40 billion owed to the organization.
The bailout package offers a lifeline to Milei, who has successfully cut inflation from 211% to 118%, driven budget deficits to surpluses, and boosted investor confidence. However, critics argue that his policies have disproportionately affected the poor, including low pensions and job losses.
The IMF praised Milei’s austerity measures, saying they have delivered rapid disinflation underpinned by a strong fiscal anchor. The deal provides for a 48-month arrangement and aims to support Argentina’s homegrown stabilization and reform agenda.
While details of the upfront payment remain unclear, the bailout is seen as a critical moment for South America’s second-largest economy, which faces mounting pressure on its foreign exchange reserves.
Source: https://edition.cnn.com/2025/04/09/americas/imf-argentina-milei-bailout-intl-hnk/index.html