Other Economies

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 10,817
% of GDP (2019): 3.14%
% of Regional Total Package: N/A
Package Per Capita in USD: 243.11
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline ARS343,000,000,000 USD5,466,135,458
01A - Short-term lending info_outline ARS343,000,000,000 USD5,466,135,458

(i) ARS1 billion working capital lines for SME through Bank of Investment and Foreign Trade (BICE) with a guarantee from the Reciprocal Guarantee Societies (SGR), and a term of up to 12 months; (ii) Mandatory credit lines through the Central Bank (ARS320 billion); (iii) Established a credit line for MSMEs, PyME Plus line, that do not have bank credit at a subsidized rate of 24%. The Central Bank authorized a special line for ARS22 billion with minimum requirements so that they can take their first credit and for the MSMEs that obtain the FOGAR guarantee, the banks cannot deny it; (iv) June 2, No amount/estimate: launched a special line of credit for work cooperatives at a subsidized rate of 18%; (v) June 11, No amount/estimate: created the PyMEs Plus program to support microbusinesses and SMEs by providing new lines of credit to eligible applicants. [update]

01B - Support policies for short-term lending info_outline

No amount/estimate: (i) Reduced reserve requirements for financial entities that offered special lines of credit to micro, small and medium-sized enterprises at maximum 24% interest; (ii) the combined divestiture of LELIQ holdings and release of reserve requirements could generate credit volumes more than 50% of current bank financing.

01C - Forex operations info_outline

See (i) in Measure 11.

02 - Credit creation info_outline ARS31,000,000,000 USD494,023,904
02A - Financial sector lending/funding info_outline
02B - Support policies for long-term lending info_outline

No amount/estimate: (i) Provided new incentives for financial entitites to increase their loans to micro, small, and medium-sized enterprises (MiPyMEs) for the payment of salaries, as long as those entities are payment agents of the company that requests it; (ii) the Central Bank also temporarily added 60 days to each category of debtor in arrears; (iii) Developed the Conformed Invoice as a credit instrument to discount in financial entities or the capital market.

02C - Loan guarantees ARS31,000,000,000 USD494,023,904

No amount/estimate: (i) See (i) in Actions that increase liabilities in Measure 1; (ii) Created a Special Affectation Fund, which will transfer ARS30 billion to the Argentine Guarantee Fund. The guarantees have the objective of facilitiating the repayment of loans for working capital. Eligible parties include companies listed in the small and medium-sized enterprise registry (MiPyMES Registry); (iii) No amount/estimate: FOGAR provides a guarantee that covers 100% of the credit in (iv) of Measure 1A.

03 - Direct long-term lending info_outline ARS35,120,000,000 USD559,681,275
03A - Long-term lending info_outline ARS35,120,000,000 USD559,681,275

(i) Offered ARS2.25 billion loans at a fixed rate of 12% and non-refundable contributions to companies, small and medium-sized enterprises (SMEs), cooperatives, and research and development instituions that contribute to the COVID-19 health emergency; (ii) Allocated ARS25 billion from the state-owned bank BNA for producers of food, personal hygiene and cleaning, and producers of medical supplie; (iii) Allocated ARS5 billion to support teleworking and ARS2.8 billion to develop infrastructure in industrial parks; (iv) granted a total of ARS70 million Non-Refundable Contributions (ANRs) for a maximum amount for high impact or associative projects; (v) increased the monthly non-remunerative financial to temporary workers in the agricultural and agro-industrial sector; (vi) No amount/estimate: May 11, launched the the Recuperar program, a sector-specific helpline with non-bank financing at an interest rate of 3% per year, for machines, tools or capital goods.

03B - Forbearance

No amount/estimate: (i) Extended maturities for debt issued under the Debt Regulatization Regime of Law No. 27,541 to small and medium-sized enterprises (SMEs) and micro-SMEs until June 30, 2020; (ii) Required financial institutions to automatically refinance unpaid credit card balances with a one-year term with 3 months grace, 9 equal and consecutive monthly installments and an annual nominal rate of 43%; (iii) Suspended punitive interest charges on unpaid balances of credits granted by financial entities, whose installments were due between April 1, 2020 and June 30, 2020.

04 - Equity support info_outline
05 - Government support to income/revenue ARS135,921,000,000 USD2,166,071,713
05A - Health ARS6,000,000,000 USD95,617,530

(i) Established Emergency Assistance Program for Work and Production for employers and workers affected by the health emergency; (ii) authorized ARS 6 billion to Argentine provinces to strengthen municipal health systems and finances; (iii) created an Emergency Family Income (IFE) to compensate the loss or serious decrease in the income of people linked to the informal sector; (iv) low-income monotributistas, and the workers and workers of private households affected by the health emergency; (v) implemented Universal Child Allowance (AUH) and Universal Pregnancy Allowance (AUE) payments, worth ARS3,103 per month for each child; (vi) increase in budget items for therapeutic communities, homes with coexistence and homes for care and community accompaniments; (vii) increased the monthly non-remunerative financial to temporary workers in the agricultural and agro-industrial sectors.

05B - Non-health ARS129,921,000,000 USD2,070,454,183

(i) Increased budget for public investment in road works, economic infrastructure, construction and renovation of houses, schools, kindergartens, and tourism by ARS100 billion; (ii) suspended fees and commissions for ATM operations (deposits, withdrawals, inquiries, etc.) through June 30, 2020; (iii) exempted the payment of employment contributions to sectors criticaly affected by the coronavirus pandemic; (iv) reinforced unemployment insurance; (v) ordered an extraordinary payment to the holders of the Food Card; (vi) May 1, established emergency economic assistance within the framework of the Self-Managed Work Program; (vii) May 1, declared that Emergency Family Income (IFE), Universal Child Allowance (AUH), and the Complementary Salary (SC) are not taxable as part of gross income; (viii) No amount/estimate: May 5, expanded the Emergency Assistance Program for Work and Production to cover more companies and activities; (ix) No amount/estimate: May 6, increased the benefits and number of beneficiaries; (x) No amount/estimate: May 11, updated the amounts of economic aid provided under the Job Insertion Program; (xi) No amount/estimate: May 12, required Banks to refund fees associated with the National Social Security Administration (ANSES) and Emergency Family Income (IFE) benefit; (x) May 14, ARS29 billion federal program which includes the construction of 5,500 new homes, the financing of 42,900 parts that include gas, electricity and sanitary infrastructure works, the granting of microcredits for the acquisition of construction materials and the carrying out of small-scale works, as well as the conditioning of community spaces in popular neighborhoods. Estimated to generate 750 thousand direct and indirect jobs between 2020 and 2021; (xi) No amount/estimate: May 18, announced an increase of 6.12% for all retirees and pensioners according to the scale of the pyramid, which brings the minimum retirement to 16,864 pesos and the maximum credit to 113,479 pesos, also includes increases in non-contributory pensions, the Universal Child Allowance, the Universal Pregnancy Allowance and the Family Allowances; (xii) May 22, ARS21 million for the acquisition of 70,000 new computers, within the framework of the federal connectivity program "Juana Manso" that carries out the educational portfolio; (xiii) No amount/estimate: June 5, ordered payment of 3 thousand pesos for those under the Empower Work Program and did not receive IFE; (xiv) No amount/estimate: June 9, national government extended the right to double compensation for individuals who are dismissed from their jobs without just cause; (xv) No amount/estimate: June 9, exempted temporarily from payment of income tax for overtime, guards and additional personnel of Health, Armed, and Security Forces and other activities related to the health emergency; (xvi) No amount/estimate: created assistance programs for individuals with disabilities affected by COVID-19; (xvii) June 12, ARS900 million, emergency measures to face the COVID-19 pandemic and its sanitary, economic and housing consequences; (xvii) No amount/estimate: June 18, extended until September 30 the suspension of the collection of all charges to operate in ATMs. [update]; (xix) No amount/estimate: June 22, increase of ARS3000 in the monthly non-contributory financial aid under Training and Employment Insurance. [update]

06 - Budget reallocation info_outline
07 - Central bank financing government
07A - Direct lending & reserve drawdown
07B - Secondary purchase: government securities
08 - International Assistance Received ARS37,650,000,000 USD600,000,000
08A - Swaps info_outline
08B - International loans/grants ARS37,650,000,000 USD600,000,000

(i) May 3, instead of defaulting to its creditors, the government proposed a three-year grace period on sovereign debt, a 5.5% reduction in bond principal, and a 62% reduction in interest payments; (ii) May 22, Argentina went into technical default when the 30-day grace period expired on $500 million interest due on $65 billion owed to private creditors.

08B1 - Asian Development Bank
08B2 - Other ARS37,650,000,000 USD600,000,000

(i) World Bank Group approved a USD300 million operation to support Argentina’s efforts to strengthen its social protection system and minimize the impact of the crisis on the most vulnerable families through the "Children and Youth Protection Project”; (ii) USD300 million from USAID in new MRA humanitarian assistance will support COVID-19 response efforts for refugees and host communities.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown ARS133,720,000,000 USD2,130,996,016

(i) Created the Provincial Financial Emergency Program, which allocates ARS120 billion to provincial administrations from the National Treasury Contribution Fund and the Fund Trustee for Provincial Development aimed at sustaining provincial finances and meet the needs caused by the COVID-19 pandemic; (ii) June 12, ARS120 million to create Trust Fund for Provincial Development, which provides financial assistance for the provinces; (iii) June 16, ARS13.6 billion, included the provinces of Córdoba, Santa Fe, Misiones and Santa Cruz in the Provincial Financial Emergency Program. [update]

11 - Other Economic Measures

(i) Capital Flow Management Measures (CFMs) that were already in place since August 2019 have largely protected Argentina so far from the impact of capital outflows; (ii) Adopted anti-price gouging policies, including price controls for food and medical supplies and ringfencing of essential supplies, including certain export restrictions on medical supplies and equipment and centralization of the sale of essential medical supplies.; (iii) April 28, Ordered that the Common Investment Funds (FCI) in pesos must invest at least 75% of their assets in financial instruments and negotiable securities issued in the Argentine Republic; (iv) Extended deadline of filing financial statements for small and medium-sized corporations; (v) May 16, extended validity of Maximum Prices until June 20; (vi) May 18, suspended price increases mobile and fixed telephony, Internet and pay TV services until August 31; June 18, extended until end of the year [update]; (v) May 19, set the domestic price of a barrel of oil at USD45 with the objective of reactivating the national hydrocarbon industry, guaranteeing the continuity of jobs and promoting self-sufficiency; (vi) June 18, extended the suspension of the closure and disabling of bank accounts until December 31, 2020, inclusive. [update]

12 - Non-Economic Measures

The country has adopted full closure of borders and a nation-wide quarantine, beginning on March 20 and lasting until at least April 26, including closed borders.