BUENOS AIRES -- Argentina moved Friday to satisfy IMF requirements for a desperately needed resumption of international aid, lifting most restrictions on bank withdrawals and proposing increases in utility rates.

Economy Minister Roberto Lavagna told AFP reporters that the limits on most bank deposit withdrawals will be lifted on Monday, although restrictions will remain in effect for some certificates of deposit.

The freeze on deposits -- with Draconian limits on how much money could be withdrawn -- was imposed last year in an effort to stem capital flight but roused public anger here and had been opposed by the International Monetary Fund.

"As of Monday all the restrictions will be lifted on bank deposits" for checking and savings accounts, Lavagna said. Lavagna said the IMF "is in complete agreement on the lifting" of the restrictions, adding that "negotiations with the IMF are advancing at their rhythm and we have daily contact."

The country will however maintain its freeze on 35 percent of the certificates of deposits, Lavagna stated. The government had earlier lifted restrictions on the other 65 percent of bank certificates.

The demand deposits unfrozen represent about 20 billion pesos, or $5.7 billion, while some 15 billion pesos remain tied up in certificates of deposit.

Argentines had been allowed to withdraw a maximum of 2,000 pesos per month since October 31, and prior to that had a limit of 1,200 pesos per month.

IMF officials had insisted on the lifting of this freeze among other measures before any new aid program is agreed upon.

Separately, Lavagna said that the government would be raising rates for certain public services like gas and electricity but not as much as had been requested by the IMF or the privatized service providers.

He was recommending to President Eduardo Duhalde a nine percent increase in electricity and 7.2 percent price hike for gas.

Duhalde had said earlier he wants to avoid any increases of more than 10 percent in utilities and other public services.

The IMF had recommended price increases of 30 percent and some companies had sought hikes of up to 70 percent, to compensate for the plunge in the Argentine peso after authorities allowed it to float freely and delinked it from the dollar.

The IMF this week gave Buenos Aires a one-year reprieve on a $141 million repayment, but said the international agency continued to press for economic measures to restore confidence in Argentina before resuming aid.