The International Monetary Fund (IMF) and Argentina reached a staff-level agreement on Tuesday (27) that could release about US$ 900 million to the government of President Javier Milei. The disbursement still needs approval from the fund's executive board, which is expected to take up the third review of the program in early December, according to CNN Brasil.
The money is part of a US$ 20 billion financing package signed between Argentina and the fund in 2025. Since then, the IMF has disbursed about US$ 15.8 billion: US$ 12 billion when the program was approved in April 2025, around US$ 2 billion after the first review in July 2025, and US$ 1 billion after the second review in May 2026. Each installment is tied to fiscal and currency targets checked in periodic reviews.
The outcome matters directly to Brazil. Argentina is one of the main destinations for Brazilian manufactured exports, above all vehicles and auto parts, and Brazil's leading partner in Mercosur, the South American trade bloc. A neighbor with stronger dollar reserves and falling inflation tends to buy more from Brazilian industry and lowers the risk of regional financial instability, at a time when Brazil itself faces currency volatility after its election.
What the IMF says
In the fund's assessment, the Argentine economy has improved since the last review. The statement released on Tuesday points to continued disinflation and to international reserves above the level planned in the program.
"As a result, net international reserves exceeded the end-of-June target by about US$ 4 billion, and the Central Bank has bought almost US$ 16 billion so far this year," the IMF said, according to G1.
On the fiscal side, the Argentine government must aim for a primary surplus of 1.4% of gross domestic product (GDP) in 2026 and keep a similar effort in 2027. A primary surplus means the state collects more than it spends before interest payments on the debt. According to CNN Brasil, Argentina's Treasury and Central Bank have taken steps to strengthen external financing and lengthen debt maturities, and the country has already secured additional outside funding while seeking more before the end of the year.
The interests at play are clear. For Milei, the dollars build up reserves and create room to ease restrictions on the use of the US currency, a core promise of his economic program. For the IMF, which counts Argentina as its largest debtor, the deal keeps the program's fiscal anchor in place and moves the country closer to returning to international credit markets, a condition for Buenos Aires to rely less on the fund in the future. The institution also pressed Argentina to broaden growth beyond the energy, mining and agriculture sectors.