IMF endorses Milei’s plans but hurdles ahead

The IMF’s approval of the next disbursement of Argentina’s current deal will provide the government with the necessary funds to make upcoming repayments (due to the Fund itself). And the fact that the Fund endorsed the new administration’s policies marks a clear change in tone and suggests that the relationship with Buenos Aires will be more cooperative than under the previous administration. That said, it appears that the Fund is still shying away from addressing some of Argentina’s more deep-seated issues, including the need to move to a fully flexible exchange rate and restructure sovereign debt.