CORRECTED - UPDATE 1-US court freezes $3.9 bln in Argentine assets

(Corrects spelling of Economy Minister's name to Boudou, instead of Boudo; adds "on Wednesday" in paragraph 7)

* Banks and investment banks may not move assets

* Argentina plans to tap foreign reserves to pay debt (Updates headline, text with additional judgments)

NEW YORK, Jan 13 (Reuters) - A U.S. judge issued orders blocking financial institutions from moving as much as $3.9 billion worth of Argentine assets, the latest twist in a dispute between investors and Buenos Aires over the 2005 debt restructuring.

Written rulings by Manhattan federal court Judge Thomas Griesa, which were dated Jan. 11 and Jan. 12 and made public on Wednesday, granted the restraining orders requested by plaintiff funds EM Ltd and NML Capital Ltd, Aurelius Capital and Blue Angel Capital.

The orders, while reiterating prior judgment amounts, now allow the investors to seek assets that financial institutions may hold on behalf of Argentina's central bank and try to claim them, one source familiar with the rulings said.

Argentine Economy Minister Amado Boudou said on Tuesday that Griesa had in effect frozen a mere $1.7 million in Central Bank accounts. He also noted the judge could have blocked only as much as $15 million under the order. [ID:N12112043]

The inclusion of the central bank clouds the Argentine government's plans to tap the bank's foreign reserves to pay public debt this year. The plan ignited a political dispute between the bank and President Cristina Fernandez, unnerving investors in the process.

In addition, Argentina is now trying to settle with these holders of the $20 billion worth of defaulted bonds who did not enter the restructuring. It is part of Argentina's effort to return to the international capital markets after defaulting on roughly $100 billion of sovereign debt eight years ago.

Boudou insisted to Reuters on Wednesday that the government will go ahead with the debt swap, which it planned for later this month. He said it will open "as soon as possible" although the government is still waiting for approval from the U.S. Securities and Exchange Commission.

The amounts -- about $2.37 billion for EM and NML combined, $335 million for Aurelius, and $237 million for Blue Angel -- include final judgments in favor of the funds plus accrued post-judgment interest.

In addition to the final judgments, the orders state that NML Capital has six more "valid causes of action" totaling $739 million against Argentina while Aurelius has $225 million still pending final judgment.

Griesa's rulings said the restraining notice was "directed to assets of Defendant the Republic of Argentina nominally held by Argentina's alter ego, Banco Central de la Republica Argentina."

The Argentine government has repeatedly criticized some of the funds that have sued, saying they did not lose money during the 2001-02 default because they bought the bonds later when they were cheap.

The case is NML Capital Ltd v. The Republic of Argentina and Banco de La Nacion Argentina, EM Ltd., U.S. District Court, Southern District of New York No. 03-02507. (Reporting by Grant McCool and Daniel Bases in New York and Helen Popper in Buenos Aires; Editing by Gary Hill and Carol Bishopric)