ABSTRACT
The strategy adopted for paying Argentina's foreign debt is of central importance to the financial reform which in turn is necessary for resolving the country's crisis. The constitutional government will have to undertake a sweeping financial reform to resolve the crisis and must seek new negotiating terms for dealing with its foreign creditors. The constitutional government has inherited a bankrupt country, a country unable to pay the interest due on its foreign debt according to the initially agreed terms. The foreign financial debt should be considered apart from all the other economic variables, from the budget for the State and the state-run enterprises, and from the balance-of-payments accounts. The new foreign payments crisis which Argentina and other countries are facing is different from those of the 1950s and 1960s. The renegotiation of the foreign debt forms part of a general situation whose importance far exceeds that of the relations between the Argentine government and the creditor banks.
