Fernandez Says Argentine Foreign Debt to Drop to 8.4% of GDP

Aug. 2 (Bloomberg) -- Argentina’s foreign debt will drop to the equivalent of 8.4 percent of gross domestic product after tomorrow’s final $2.2 billion payment on its Boden 2012 bonds, President Cristina Fernandez de Kirchner said at an event at the Buenos Aires stock exchange.

“The payment gives us an immense freedom from markets which move every day and don’t allow us to act efficiently,” Fernandez said.

Government debt held by the private sector dropped to the equivalent of 88 percent of reserves and 12 percent of gross domestic product in 2011 from 815 percent and 124 percent respectively in 2002, Fernandez said. Most government debt is in the hands of the public sector.

Twenty-two percent of the Boden 2012 bonds are owned by local investors, while the rest is held abroad, she said.

To contact the reporter on this story: Camila Russo in Buenos Aires at crusso15@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net