MercoPress. South Atlantic News Agency

Argentine public debt jumped 25,8 billion US dollars.

Argentina's public debt increased 25,841 billion US dollars during 2003 because of accrued interests to creditors and the appreciation of the peso, Euro and Yen vis-à-vis the US dollar, announced the Argentine Ministry of Economy.

Domestic and foreign financial liabilities increased in 2003 from 152,98 billion US dollars to 178,821 billion US dollars, equivalent to 138% of Argentina's GDP which last year was estimated in 129,735 billion US dollars.

The information points out that 50% of Argentina's debt is defaulted therefore the increase in interest arrears.

Similarly a stronger Euro and Yen forced an overall increase in US dollars of bonds and loans in those currencies. This was estimated in an additional 30% in US dollars.

In the domestic market as the Argentine peso appreciated in value from 3,40 to 2,92 pesos to the US dollar, so did a vast majority of debt that was converted from US dollars to Argentine pesos in the midst of the 2002/03 financial crisis.

Public debt since the devaluation of the Argentine peso in January 2002 has expanded 34,55 billion US dollars. Of that volume 14,5 billion US dollars correspond to provincial debt absorbed by the federal government and 2,4 billion to the elimination of provincial bonds (or "fake money") which was printed by local governments in the midst of the financial crisis and lack of liquidity.

Compensations to banks and private depositors who suffered when US dollar savings were converted into Argentine pesos add up to 15 billion US dollars plus 870 million US dollars which had to be repaid to the civil service and pensioners for the 13% salary cut imposed during the administration of president Fernando De la Rúa, 1999-2001.