Boudou announced the reopening of debt-swap

Economy Minister Amado Boudou announced today the intention to send a bill to Congress in order to temporarily call off the “bolt law” and to reopen the debt-swap. The aim is to bring the bondholders of 20 billion dollars that were left out in 2005, in an attempt to facilitate the return of the capital markets to Argentina.

Boudou was accompanied by the Finance Secretary, Hernan Lorenzino, and by the Economic Policy Minister, Eduardo Feletti. During the press conference, the Economy Minister confirmed that the measure responds to the “proposal from a group of banks,” and said that it is “a good starting point to begin discussing the reopening of this process that began in 2005.”

“We sensed that much of these holders were convinced they had taken a wrong decision in not entering the swap,” he said.

The idea, according to Boudou, is that “the process be finalized within the next 45 days,” and that “70 percent of default shareholders be able to accede to this new offer.”

Boudou added that “this year, the government is moving forward on the countercyclical policies, especially those that have to do with public works, and we will continue to build on this in 2010.”

“President Cristina Fernández de Kirchner has taken the decision to send the project to Congress, which would mean the temporary suspension of the bolt law”. He added that Argentina’s proposal of 2005 was beneficial and it was convenient for both parts, and that was proven with time.”