This new IMF-Argentina agreement marks a pivotal moment in President Javier Milei’s radical economic experiment—offering both a much-needed cash infusion and an endorsement of his aggressive austerity push.

With a US$20 billion staff-level agreement now in place, Milei is closer to securing IMF executive board approval, which would give Argentina breathing room amid dwindling reserves and a history of debt crises. The IMF’s tone is notably complimentary, crediting Milei’s administration for “impressive early progress,” including:

• Slashing public spending

• Dismantling long-standing price controls and subsidies

• Cutting thousands of public jobs

• Achieving Argentina’s first fiscal surplus in nearly 20 years

But while this fiscal transformation has impressed international lenders, it’s also generated domestic controversy, with protests erupting over public sector layoffs and the erosion of social safety nets.

Still, without this loan, Milei risked running out of foreign reserves—vital for repaying external debt and lifting Argentina’s strict currency controls, a cornerstone in his vision to open the country to global markets and attract investment.

The IMF emphasized that the 48-month arrangement aims to help “rebuild reserves, support the vulnerable, and restore sustained growth.” Critics, however, remain skeptical, pointing to Argentina’s long, fraught relationship with the IMF—this being the 23rd program since 1958.

All eyes now turn to the IMF board’s vote in the coming days. If approved, this deal could be the anchor Milei needs to solidify his economic reset, but its success will hinge on how he manages growing social unrest amid continued belt-tightening.