Higher level of human development, including better health and education, than other similarly rated sovereigns. High government debt burden. Limited fiscal flexibility. Limited monetary flexibility. The credit rating on the Republic of Argentina after it emerges from selective default will be constrained by a high government debt burden. The general government's debt burden is likely to remain above 70% of GDP after the financial close of the current debt-rescheduling exercise. Adding the approximately $20 billion in defaulted debt (excluding past-due interest on it) that has not been exchanged in the recent debt exchange would raise the debt burden to more than 81% of Argentina's projected 2005 GDP. Although the proposed new sovereign bonds will create only a modest burden on
