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Montevideo, October 1st 2025 - 17:37 UTC

 

 

IMF supports Argentina despite electoral setback

Wednesday, September 10th 2025 - 10:23 UTC
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Argentina's economy calmed down on Tuesday after a hectic Monday following the Buenos Aires elections Argentina's economy calmed down on Tuesday after a hectic Monday following the Buenos Aires elections

The International Monetary Fund (IMF) publicly reaffirmed on Tuesday its support for the Argentine Government's economic program despite Sunday's electoral loss in the province of Buenos Aires. This move is seen as a crucial effort to calm markets that reacted with panic to the election results.

IMF spokeswoman Julie Kozack announced the organization's “close commitment” to Argentina's authorities. She specifically backed the program's core pillars of fiscal balance, a comprehensive deregulation agenda, and maintaining the existing exchange rate framework.

“We support their commitment to ensure the sustainability of the program's FX and monetary framework, as well as their continued adherence to the fiscal anchor and comprehensive deregulation agenda,” Kozack wrote on social media. “IMF staff are closely engaged with the Argentine authorities as they implement their program to consolidate stability and improve the country's growth prospects,” she also mentioned.

In response, President Javier Milei and Economy Minister Luis Toto Caputo publicly confirmed that they “will not budge an inch from the program.” Milei also canceled a trip to Spain to focus on the domestic crisis, which includes forming a new “national political roundtable” and seeking dialogue with provincial governors.

“We will not deviate from the program in any way,” Milei insisted.

The IMF's support comes after a volatile “black Monday” for Argentina's markets. The official dollar reached a new high of AR$1,460, and stocks and bonds fell sharply. However, the market stabilized on Tuesday, with the dollar closing at $1,425 and bonds and stocks rebounding.

The government is also facing an immediate financial challenge, as the Economy Ministry needs to raise a significant amount of money to renew debt maturities, with the shortest-term bonds extending past the national elections in October, which adds to the uncertainty and risk for investors and banks.

Categories: Economy, Politics, Argentina.

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