Key details from the new agreement with the IMF

Some of the most important details from Wednesday’s agreement with the International Monetary Fund, announced in New York by IMF Managing Director Christine Lagarde in person alongside Treasury Minister Nicolás Dujovne and approved with record speed by the IMF board of directors:

–US$13.4bill ion to b ere mit te dint he rema inde rofth is ye ar( upf ro mUS$5.8bill ion ), US$22.8 billion in the next (up from US$11.7 billion) with US$5.8 billion remaining for both 2020 and 2021, thus adding US$7.1 billion to the US$50 billion from the initial June deal.

– The use of these accelerated tranches is to be at the disposal of the Ecnnomy Ministry.

–Infla ti on-targ et ingtob ere placedby as ystemholdingt he ex pan si onofthemo ne ysupply down to zero until next June via interest rates, statutory reserve requirements and the new currency float.

– This currency float places the dollar within a 34-44-peso range, which is to rise three percent monthly until the end of the year when it will be reviewed, with Central Bank intervention only permitted beyond this range.

– Peso liquidity is to be absorbed via a new daily Leliq bond with fluctuating interest rates.

– The zero deficit contained in the 2019 draft budget is confirmed with a fiscal surplus of o ne perc en tofGross Do mes tic Product in 2020.