The agreement paves the way for Argentina to receive the latest injection of IMF funds, set out in a financing deal agreed last year, as the government battles to get inflation under control, protect the local currency and revive growth.

The $10.87bn disbursement, which is part of an overall $56.3bn bailout deal to help the country recover from an economic crisis, has to be approved by the IMF executive board before the funds can be released.

However, the IMF said the Argentine authorities had a “strong determination to address macro-economic imbalances”.

“Economic activity has been weak but there are good prospects for a gradual recovery,” is said.

The disbursement of the $10.87bn would bring the total assistance handed to the Latin American country since June to just over $30bn.

President Mauricio Macri has already introduced a number of ‘emergency’ measures to deal with the country’s economic woes, including cutting government ministries and raising export taxes.

The country has been struggling with high inflation and a recession. People took to the streets last month to protest against high unemployment and utility price hikes – a result of Macri’s spending cuts.

The IMF’s board signed off the last payment in December, worth around $7.6bn, after a staff-level agreement was reached in November. The board’s next review is expected in the coming weeks, the IMF said.