The agreement is subject to approval by the IMF's Executive Board, which is expected to review it "in the coming days," the statement said.

The International Monetary Fund (IMF) and the Argentine government have reached a preliminary agreement for a US$20 billion (more than €18.5 billion) rescue package.

"IMF staff and the Argentine authorities have reached a staff-level agreement on a comprehensive economic program that could be supported by a 48-month Extended Fund Facility (EFF) arrangement totaling US$20 billion," the Fund said in a brief statement.

The agreement is subject to approval by the IMF's Executive Board, which is expected to review it "in the coming days," the statement said.

"The agreement builds on the authorities' impressive initial progress in stabilizing the economy, supported by a strong fiscal anchor, which is producing rapid disinflation and a recovery in activity and social indicators," the IMF noted.

The program seeks to support the next phase of Argentina's stabilization and reform agenda, which aims to strengthen macroeconomic stability, bolster external sustainability, and unleash strong and more sustainable growth, while managing a more challenging global environment.

Argentina is the IMF's largest debtor and already owes the Fund more than US$44 billion. The new loans will now be used to cover interest payments to the IMF and increase the Central Bank's foreign currency reserves.