Argentina to hold auctions in debt buyback

BUENOS AIRES, Aug 21 (Reuters) - Argentina announced on Thursday it will hold auctions as part of a debt buyback plan aimed at bolstering sagging bond prices on investor worries about inflation and the country's financing outlook.

The auctions will begin next week and continue through the end of the year, the Economy Ministry said in a statement.

"This plan will allow for the consolidation of the predictability of the buyback program, focusing on short- and medium-term debt," the ministry said, without specifying which bonds will be included or how often the auctions will be held.

The auctions seek to cancel bonds who prices "appear to be unjustifiably distorted by financial markets," it added.

Argentina launched a debt buyback program last week to stem falling bond prices after the government sold $1 billion in 2015 bonds to Venezuela in a direct sale, with a yield of 14.8 percent.

High inflation and falling prices for soy, Argentina's top foreign income earner, have raised concerns the government could face financing shortfalls next year.

The government repurchased $270 million in 2008 and 2009 debt last week.

Argentine bonds traded on the domestic market have fallen 1.5 percent on average over the last three sessions. (Reporting by Walter Bianchi; Writing by Kevin Gray)