July 31 (Reuters) – The International Monetary Fund board on Thursday completed its first review of the $20 billion program with Argentina, approving a disbursement of approximately $2 billion.
“Strong policy implementation has supported a smooth transition to a more flexible exchange rate regime, with declining inflation and continued economic growth,” the IMF said in a statement, while acknowledging Argentina missed its mid-June target for net international reserves accumulation.
The IMF staff said last week that understandings had been reached with the government on policies including safeguarding the fiscal anchor and rebuilding reserves.
“This will be complemented by further actions to create a more open, resilient, and market-based economy,” the IMF staff said.
In the wake of the $20 billion, 48-month deal Argentina reached with the IMF in April, the country loosened years-long controls that restricted access to foreign currency and has let the local peso fluctuate within a moving band.
Reporting by Rodrigo Campos in New York and Abu Sultan in Bengaluru; Editing by Chris Reese
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