BUENOS AIRES, (Reuters) – A major Argentine local currency debt swap concluded ‘very successfully’, a government spokesperson said yesterday, as the country looks to keep state finances afloat amid rampant inflation at 109% and dwindling foreign currency reserves.
The voluntary exchange, part of a wider push to restructure government debts and avoid default, is estimated by analysts to involve some 10.2 trillion pesos ($42 billion) of debt assets, with just under half held by private investors.
“Today we carried out the largest public debt swap in Argentine history in the domestic market,” Eduardo Setti, Secretary of Finance, said on Twitter, adding it would help clear maturities due in the second half of the year.
Government spokeswoman Gabriela Cerruti said the exchange had gone “very successfully”, though did not divulge the detailed results which are expected later on Thursday.
“This completely clears debt in pesos in the second semester,” she said, adding the government hoped it would help talks progress this month with the International Monetary Fund (IMF) to rework the country’s $44 billion loan program.
The IMF welcomed Argentina’s debt swap earlier yesterday, adding that the operation should safeguard debt sustainability.
