Argentina’s Economic Reforms
IMF Chief Kristalina Georgieva Reaffirms Support
eyesonsuriname
Amsterdam, 25 april 2025–International Monetary Fund (IMF) Managing Director Kristalina Georgieva has once again reiterated her strong support for Argentina’s ongoing economic reform efforts. This reaffirmation came after a meeting with Argentine Economy Minister Luis Caputo during the IMF and World Bank Spring Meetings held in Washington, D.C.
Following the meeting, Minister Caputo posted on social media platforms:
“Excellent meeting where we shared the progress of the economic program, especially in this difficult global context. Thank you very much Kristalina Georgieva.”
The discussions primarily revolved around the implementation and progress of Argentina’s Extended Fund Facility (EFF) program, which was officially initiated on April 11. The program has been met with encouraging responses from international markets, reflecting increased investor confidence and positive sentiment toward the South American nation’s fiscal direction.
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According to a statement released by Argentina’s Economy Ministry, Georgieva and Caputo shared a common understanding of the favorable market reaction to the new economic program. The statement emphasized that this reaction serves as confirmation of the program’s robustness, even as the global economic environment remains turbulent and marked by significant market volatility.
The meeting also marked the first formal encounter between IMF officials and Argentina’s economic leadership since the approval of the updated EFF program. The IMF took the opportunity to recognize the efforts of the entire Argentine economic team, while underscoring the importance of continued constructive collaboration to ensure the program’s success.
Under the newly approved EFF agreement, the IMF is providing Argentina with US$20 billion in total financing, including an initial disbursement of US$12 billion. Both Georgieva and Caputo underscored that the program’s structural integrity remains strong, despite broader global economic uncertainties.
In a related development, U.S. Treasury Secretary Scott Bessent also expressed clear support for Argentina’s reform agenda under President Javier Milei, highlighting the country as a noteworthy example of a government committed to responsible fiscal management and institutional change.
“Argentina is a good example. I was in Argentina earlier this month to demonstrate U.S. support for the IMF’s efforts to help the country restructure financially,” Bessent said during an event hosted by the Institute of International Finance (IIF).
Bessent stressed the importance of responsible IMF lending and reinforced that IMF support should be contingent on genuine reform. He made clear that while the IMF plays a crucial role in stabilizing economies in crisis, it must also hold countries accountable for implementing the agreed-upon measures.
“When done responsibly, IMF lending is central to its contribution to the global economy. When markets fail, the IMF steps in and provides resources. In return, countries implement economic reforms to address their balance of payments problems and boost economic growth,” Bessent explained.
“But not all countries deserve it,” he added. “The IMF must hold countries accountable for implementing economic reforms. And sometimes, the IMF has to say no. The organization has no obligation to lend to countries that do not follow through with reforms. The real measure of IMF success should be economic stability and growth—not the size of its lending portfolio.”