IMF urges Milei to turn stabilisation gains into jobs and investment

Argentina should use the gains from financial stabilisation to create jobs and boost investment, a top IMF official said Thursday.

Julie Kozack, the International Monetary Fund’s communications director, urged President Javier Milei’s government to turn its economic progress into stronger growth.

An IMF technical team reached a staff-level agreement with Buenos Aires this week over the third review of Argentina’s four-year lending programme, paving the way for a disbursement of about US$900 million.

Argentina’s massive Extended Fund Facility (EFF) programme, worth US$20 billion, was approved by the IMF in April 2025.

“In our discussions with the Argentine authorities, there was a shared understanding of the importance of expanding the gains from stabilisation achieved so far into stronger growth and job creation,” Kozack said at a press briefing in Washington.

The IMF has described Argentina’s macroeconomic performance as “impressive,” praising President Javier Milei’s government for its sharp cuts in public spending and efforts to rein in inflation and the fiscal deficit.

However, the Fund has also highlighted the challenge of translating those gains into employment. The Argentine Industrial Union (UIA), a business association, recently reported that about 90,000 jobs had been lost since August 2023.

Kozack outlined four areas in which the government and the IMF have agreed action is needed to extend the benefits of stabilisation: deepening capital and mortgage markets to widen access to finance and support private investment and domestic demand; increasing labour market flexibility to encourage private-sector job creation; advancing recently awarded infrastructure concessions; and facilitating strategic investments approved under Milei’s flagship RIGI investment incentive scheme for major investors. 

More than US$70 billion in projects have been approved under the investment incentive scheme, Kozack noted. Together with labour and market reforms approved earlier this year, the measures are intended to strengthen growth and employment over time.

The IMF also emphasised the need to continue building international reserves to strengthen Argentina’s external position and help reduce its country risk premium rating.

Kozack said the authorities remained firmly committed to the fiscal anchor of a zero overall balance and had pledged to continue improving the monetary policy framework.

This, she said, would support the “remonetisation” of the economy, improve liquidity management and, crucially, help direct credit more effectively.

“The overall message on Argentina is to stay the course with strong policies and reforms that support investment, financing and job creation,” Kozack said. This should help the country build resilience and achieve stronger, more durable growth over time.

The IMF’s Executive Board is expected to consider the latest programme review in early December. Approval would unlock the additional US$900-million disbursement.
 

– TIMES/AFP/NA