IMF Board to Review Argentina's $44 Billion Aid Program Next Month

According to anonymous sources, the International Monetary Fund (IMF) board is expected to review Argentina’s current $44 billion aid program next month. This review is a critical process during a time when Argentine President Javier Milei is negotiating for a new loan.

The board meeting is tentatively scheduled for early January, during which a staff report regarding Argentina's 2022 agreement with the IMF will be assessed. Sources opted to remain anonymous as the details have not yet been made public.

This review, known as an ex-post evaluation, will assess the design and implementation of the aid program. Such an evaluation is a standard procedure for countries that receive exceptional access loans, which exceed the IMF's usual lending limits.

In response to queries via email, the IMF indicated that a staff team is completing the report. The IMF described this as "a standard and routine procedure for all IMF programs that involve lending above normal borrowing levels." However, the IMF did not comment on when the board review will take place.

Large loans, such as those taken by Argentina, have recently faced criticism from the IMF’s internal audit unit. The audit unit pointed to shortcomings in the design and execution of such loans, highlighting issues of consistency, clarity of expectations, and lack of benchmark points.

For Argentina, the largest borrower from the IMF, this review is a necessary step for the Milei administration to finalize a new agreement. Earlier this month, an IMF spokesperson announced that negotiations with Argentina are already ongoing. Officials from the Milei government have suggested that the new agreement could include additional funding.