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Principles for the Management of Public Debt Sustainability in the Argentine Republic

As a result of the macroeconomic policies implemented in recent years, the Argentine Republic is going through a situation of deep economic and social crisis. As of April 2018, in the context of the collapse of the prevailing economic model, the large volume of public debt that the Republic accumulated during the previous two years began to be considered as unsustainable by the market. Furthermore, those years were not accompanied by an increase in productive capacity which would allow the fulfillment of payment obligations respecting social sustainability. Within this context, the Republic invites the holders of public debt to initiate conversations on the basis of good faith in order to adapt the public debt to the objectives of its sustainability, observing the following principles.

• In order to solve the current macroeconomic inconsistency, debt policies are required as part of a comprehensive program aimed at restoring public debt’s sustainability and recovering the path of sustainable growth.
• The Argentine Republic expresses its genuine commitment to pay.
• The economic recovery is a necessary condition to restore the ability to pay.
• Public debt policies must also set the conditions for the development of the domestic capital market.