Argentine debt shrinks 2.8 pct in Q3 on forex moves

BUENOS AIRES, Dec 1 (Reuters) - Argentina's public debt load fell by 2.8 percent during the third quarter to $145.71 billion, due to the impact of exchange rate fluctuations, the Economy Ministry said on Monday in a report.

Latin America's No. 3 economy defaulted on some $100 billion in sovereign debt in 2002, and concerns are growing about its ability to meet rising obligations next year.

Of Argentina's current public debt, 48.3 percent is denominated in pesos, 40.1 percent in dollars and 9.7 percent in euros, with the roughly 2 percent remaining denominated in other currencies.

Its total debt rises to $174.46 billion if one includes the $28.75 billion owed to so-called holdout creditors who rejected the country's 2005 debt restructuring.

Exchange rate fluctuations cut the total debt load, including the holdouts' share, by $6.32 billion as a stronger dollar cut the value of Argentina's peso-denominated debt and its euro bonds.

According to the exchange rate used by the ministry, Argentina's peso ARSB= fell from 3.025 per dollar on June 30 to 3.135 per dollar on Sept 30.

With an average maturity of 12.4 years, Argentine debt -- excluding the holdouts -- represented 48.7 percent of gross domestic product as of June 30. That compares with 166.4 percent of GDP in 2002, when the country defaulted.

Argentina faces debt and interest payments totaling $19.9 billion in 2009. In its most recent financing program, only $8 billion of that was shown to be covered, and investors worry Argentina could have trouble finding financing since lawsuits by the holdouts have blocked access to global capital markets.

Economy Minister Carlos Fernandez assured business leaders last week, however, that the government has enough resources to meet its debt obligations next year, even if tight credit conditions persist worldwide.

In September, the government unveiled a tentative plan to strike a deal with the holdouts and swap so-called guaranteed loans coming due over the next few years for bonds with longer maturities, but little progress has been seen on either front. (For more information, please click on: here#A.1.1!A1) (Reporting by Lucas Bergman; Writing by Hilary Burke; Editing by Diane Craft)