Overview
- The IMF approved the second review of Argentina’s Extended Fund Facility and disbursed US$1.0 billion on Friday, issuing a staff report that urged faster liberalization of capital controls, an updated Indec inflation methodology, and stronger legal safeguards for the Central Bank (BCRA).
- Argentina’s economy minister Luis Caputo rejected issuing new external debt at near‑10% rates and said the government will rely on domestic refinancing and other tools instead of returning to high‑cost international markets for now.
- The BCRA has been buying dollars aggressively this year, with net purchases near US$9 billion and gross reserves reported around US$46.8 billion, a build that the IMF noted but said still leaves vulnerabilities.
- Serious governance and security strains continue in the region, highlighted by the assassination of Piura mayor Víctor Hugo Febre, a probe into a suspected hack of Peru’s Sismate alert system, police findings of dozens of alleged criminal affiliates on party rolls, and a large security deployment in Córdoba ahead of a football final.
- The IMF backed the program but warned that tighter global financing conditions and political uncertainty ahead of the 2027 presidential vote could threaten implementation, meaning markets and officials will watch reserves, fiscal plans from cuts to export taxes, and the unfolding security and cyber investigations.