The International Monetary Fund on Tuesday said it had reached a staff-level agreement with Argentina on the third review of the country's bailout, potentially unlocking about $900 million for the Latin American country.

The agreement is subject to approval by the IMF's Executive Board, after which the tranche can be disbursed to the Argentinian government.

In 2025, as it dealt with rampant inflation and currency depreciation, Argentina concluded an extended fund facility agreement with the IMF worth around $20 billion over four years.

Since then, President Javier Milei has instituted a wide-ranging reform plan involving slashing public spending and reining in inflation.

The social spending cuts instituted by his government with the IMF's approval have been deeply unpopular, prompting frequent protests.

Since Milei took office in December 2023, inflation has dropped from triple digits to the current 33.5 percent.

In a statement on Tuesday, the IMF said Milei's reform program had delivered "impressive results." It lauded a marked improvement in the country's fiscal buffers and foreign exchange reserves.

It also praised the structural reforms instituted by the government "in the areas of trade, labor, investment and capital markets," saying they were "enabling a more efficient and market-based economy."

Part of the agreement for the release of the latest tranche of the bailout involved pledges from the Argentinian government to deliver further promises on both fiscal and monetary policy.

On the fiscal side, the IMF said Argentina had committed to delivering a primary surplus of 1.4 percent of GDP this year and next.

In terms of monetary policy, the central bank would take actions to support disinflation and reserve accumulation, while allowing exchange rate flexibility within a band, the IMF said.

On the reform agenda, the IMF said priority would be given to deepening domestic capital markets and expanding access to longer-term financing, among other steps. Argentina is the IMF's largest debtor and has $1.2 billion in debts to the Fund due this year, with a further $7.8 billion due next year. While Milei's government has succeeded in reining in runaway inflation, economic performance has been lacking in other key areas. Consumer activity is anemic while debt defaults are skyrocketing.

Mortgage defaults have tripled over the past year, hitting 12.8 percent, the highest level in 20 years. Growth remains sluggish and earlier this month the IMF downgraded its forecast for GDP expansion to 2.1 percent in 2026.