Argentina and its debt swap

Economy minister Amado Boudou said the country received approval to restructure 20 billion dollars in debt.

Boudou said the market regulator of U.S. securities (Securities and Exchange Commission) gave the country the green light to offer its creditors a swap of debt expired in the massive default experienced in Argentina in 2001 and 2002 .

The Minister added that the deal would help resolve the serious problems generated in 2001 that left Argentina without access to international financial markets.

He also clarified that “The exchange seeks to recall 20 billion dollars in bonds, and stop lawsuits against Argentina’s future debt issuings.”

Boudou further stated that “In 2005 the country restructured its debt, forcing bondholders from Italy, Japan, the USA and other countries to take heavy losses or get nothing. But about 25% of the investors rejected the deal and have been demanding Argentina trying to recover their investments. “

Economists say Argentina would have hardly half the money to pay the 15 billion dollars of debt due this year.

President Cristina Fernandez de Kirchner promised to maintain social spending this year despite inflation and a reduction in tax revenue.