International Monetary Fund (IMF) Managing Director Kristalina Georgieva discussed several aspects of the Argentine economy in a press conference she gave on Monday alongside Economy Minister Luis Caputo upon arriving in Buenos Aires. 

Although Georgieva addressed concerns over the difficulties the country is facing, she presented an overall optimistic outlook, saying that she “didn’t foresee the need for Argentina to go to the Fund for additional financing.” 

“Why am I saying that? Because we look at the worst-case scenario and how Argentina would prepare for it. And we see a very determined buildup of reserves and a very comprehensive strategy on how to secure Argentina’s viability through 2027,” she explained. 

Georgieva added that the country was on a “good track to join the club of emerging markets that have borrowed from the fund, reformed their economies, and borrowed no more.”

Argentina’s efforts

During the press conference, Georgieva acknowledged that the transformation Argentina is undertaking is “hard.” The IMF head compared the current situation with the process her native Bulgaria experienced in the 1990s.

“The country had to go through very tough times. But perseverance in putting in place strong macroeconomic and financial stability, as well as openness of the economy and injection for growth, pays off,” she explained. 

She noted that Bulgaria is now a member of the European Union, joined the Eurozone in January, and its per capita income “has increased eightfold.”

Georgieva stressed that “we do have to recognize that transformation is hard, but when successful, it brings confidence.”

Concerns about SMEs and employment

Although Georgieva acknowledged the strong performance of Argentina’s agriculture, mining, and energy sectors, she also admitted that the weak performance of other sectors —including construction, services, and logistics— requires attention, particularly when it comes to small and medium-sized enterprises (SMEs).

“What can we do to get growth in Argentina to be more broadly shared? That was the main topic of discussion today. What can we specifically support Argentina to do to further ease financial conditions so small businesses and households can borrow and then turn this into a broader, shared prosperity in the country?” she emphasized.

She highlighted that SMEs account for most employment in Argentina, although informality has become increasingly widespread. “Unemployment is not high by comparison; it is under 8%. But a big chunk of it is in informal employment.”

While she said the labor reform approved by the government earlier this year was “very healthy” in addressing that problem, she added that more remains to be done.

“Whenever we look at countries that gain in employment, SMEs play a very important role,” she said.

She also noted that Argentina has an additional advantage: “It is energy security in a world of artificial intelligence.”

According to Georgieva, energy security could help “diversify the economy.”

The fight against corruption

Georgieva also pointed to three key issues that must be addressed in order for Argentina to develop into an economy like those of Finland, Sweden, or South Korea: infrastructure, education, and the rule of law.

“Sticking to the rule of law, addressing the deficiencies that have been in place, being relentless in the fight against corruption. That is the way to cure the fear that comes from the past,” she said, concluding with a direct appeal to the country.

“Are you guys ready for it? The Argentines in the room. It’s not going to be me; it’s you. Can you persevere to do it?”

Georgieva’s visit to Argentina

Georgieva’s two-day visit to Argentina began with a press conference and continued with a meeting with President Javier Milei at 2:00 p.m. She later attended a cabinet meeting, at 2:30 p.m.

Her agenda also includes meetings with Economy Minister Luis Caputo, Central Bank Governor Santiago Bausili, and other government officials, as well as discussions with academics, students, and private-sector leaders.

The visit will also include a stop in Vaca Muerta, where she will meet with workers and executives from the energy sector.

Georgieva’s trip comes ahead of the third review of Argentina’s program with the IMF, scheduled for September. If approved, the review could unlock a US$860 million disbursement.

This is Georgieva’s first visit to Argentina since taking over as IMF managing director seven years ago and the first visit to Buenos Aires by the Fund’s top official in eight years.

The last such visit was by France’s Christine Lagarde in July 2018, just weeks after then-President Mauricio Macri and the IMF signed the US$45 billion agreement.

Argentina’s debt with the IMF

Argentina is, by a wide margin, the IMF’s largest debtor. As of July 24, it had US$57.7 billion in outstanding credit at the Fund’s prevailing exchange rate.

This represents 34.6% of all outstanding IMF lending and is nearly four times larger than Ukraine’s debt, making Argentina by far the Fund’s largest borrower.

Much of that debt originated from the agreement signed in 2018 under Macri, which was refinanced in 2022 during the Alberto Fernández administration.

In April 2025, President Javier Milei’s government reached a new US$20 billion agreement with the IMF, marking the 23rd program between Argentina and the Fund.