BUENOS AIRES Aug 26 Argentina will offer a bond
swap on restructured sovereign debt to shift payments to Buenos
Aires, President Cristina Fernandez said on Monday, in an
attempt to avoid the impact of U.S. court rulings that threaten
to interrupt payments.
The voluntary swap covering debt in all foreign markets
would only take place if Argentina's ongoing appeals of the U.S.
court rulings are rejected, a government source told Reuters on
condition of anonymity.
Argentina on Friday lost its appeal of a U.S. court order
requiring it to pay $1.33 billion to hedge funds that refused to
accept steep discounts when the nation restructured its debt in
the years following a massive default in 2002.
The 93 percent of bondholders who accepted restructurings in
2005 and 2010, receiving less than 30 cents on the dollar, worry
that Argentina's refusal to pay bond "holdouts" in the face of
the court orders could result in a freeze on the payment of