IMF says Argentina should not dwell on market swings as bond spreads widen
The IMF said Argentina’s recent market swings reflect global, regional and domestic factors as it prepares a review that could unlock about $900 million.
- On Thursday, International Monetary Fund spokesperson Julie Kozack addressed the nation's market volatility, urging investors to focus on "improving fundamentals," she said, rather than short-term fluctuations.
- Economy Minister Luis Caputo attributed the recent rise in the country's risk index to fears of political change, not current policies, after the index hit around 860 basis points on Tuesday.
- The Executive Board is expected to vote in early December on the third review of the lending program, which would release about $900 million to Buenos Aires.
- Data shows the lender has disbursed $15.8bn to the largest debtor, while the institution recently cut its 2026 growth forecast to 2.1% from 3.5% amid ongoing economic challenges.
- Investors remain cautious about the sustainability of President Javier Milei's program ahead of the October 2027 presidential election, as market analysts suggest the potential for increased financial stress.
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The agency spokeswoman said that the latest movements “emphasize the importance of further strengthening the economic resilience” of the country; progress to submit the third review of the agreement to the executive board
The spokesperson for the Monetary Fund, Julie Kozack, said that there was a change of mood in the markets that affected Argentina. The disbursement of $900 million would arrive in early December.
IMF says Argentina should not dwell on market swings as bond spreads widen
Credit: unsplashThe IMF has urged investors to look past recent turbulence in Argentine markets and focus on what it called improving fundamentals, as staff prepare for a review that would unlock about $900mn.
The agency's communications director, Julie Kozack, minimized the recent volatility of Argentine markets and awarded it to global, regional and local factors. In this context, she confirmed that the agency is preparing the third revision of the program, which would enable a disbursement of about USD 900 million.
The agency highlighted the advances of Javier Milei’s economic program, but insisted on the need to maintain fiscal discipline. In addition, there is still no date to approve a new disbursement of US$900 million.
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