Over a week has passed since the IMF approved its programme for Argentina, a 30-month extended fund facility (EFF) for an amount of US$44bn (1,001% of quota).
It was a long time coming (over two years in the waiting), but now comes the hard part –implementation.
And so far, foreign bondholders have yet to be convinced.
Here we illustrate the situation in eight charts, summarising our previous research.
Argentina's IMF programme is anchored on gradual fiscal adjustment...
...and disinflation, albeit one that is also slow and uncertain
Meanwhile, the large programme refinances the existing payments to the Fund, pushing them back several years
The programme's aim is to support growth...
...and to put public debt back on a sustainable path
However delivering even the programme's modest fiscal adjustment will be politically challenging...
...and the authorities will need to restore market confidence in order to meet still high financing needs
Foreign bondholders remain unconvinced, even with the low debt service in the near term
