Argentina gets US$57 bil as IMF doubles down on record bailout

(Sept 27): Argentina won a promise of extra cash and faster delivery from the International Monetary Fund, which expanded a record bailout to help the country defend its currency and pull the economy out of recession.

Argentina’s credit line will increase to about US$57 billion ($77.9 billion) over three years, from the US$50 billion announced in June. The Fund will also deliver more of that cash up front. Argentina has already received US$15 billion and will have access to another US$35 billion by the end of 2019.

In return, President Mauricio Macri and his new central bank chief will have to tighten policy. Argentina pledged to accelerate budget savings and freeze the supply of money to the economy in an effort to stamp out inflation. It will also stop burning through foreign currency reserves to defend the peso.

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