Oct. 6 (Bloomberg) -- Argentina’s government will “exchange” information about its economy with the International Monetary Fund, Economy Minister Amado Boudou said in an interview with Buenos Aires-based Radio Continental.

“There might be a meeting or a mission or a context in which to exchange information, where Argentina will show its accounts and its plans,” Boudou said from Istanbul, after meeting with IMF Managing Director Dominique Strauss-Kahn. “Argentina won’t allow and doesn’t expect to receive any questioning of its public, economic or monetary policies.”

Argentina and the IMF have been discussing the terms of a so-called Article IV consultation, a review of the country’s economic policies and data that every member of the organization submits to on an annual basis. A review by the IMF, which Argentina has blocked since 2006, may help the country win support from creditors to restructure defaulted debt.

Boudou said the IMF won’t carry out an official review of the country’s accounts.

“We remain skeptical that the government will in the end accept an IMF article IV,” Daniel Kerner, an analyst at the Eurasia Group in New York, wrote in a report today. “They want to put substantial restrictions on what the IMF staff will be able to do, something that we think the IMF will be reluctant to accept even if they want to have a constructive attitude towards Argentina, which could make negotiations difficult.”

Bond Market

Argentine bonds rose, pushing borrowing costs to the lowest in more than a year, on speculation the government will reach an agreement with creditors who hold $20 billion of defaulted debt.

Any new offer to holders of the country’s defaulted debt would be on worse terms than the country’s 2005 exchange because a congressional law prevents the government from improving the past offer, Boudou said. Argentina paid about 30 cents on the dollar in the 2005 restructuring.

He declined to say whether the government was planning to make an offer.

The extra yield investors demand to own Argentina’s dollar bonds instead of U.S. Treasuries narrowed 22 basis points to 7 percentage points, according to JPMorgan Chase & Co. The so- called spread is the smallest since Sept. 3, 2008. A basis point equals 0.01 percentage point.

Argentina will offer holders of the defaulted debt about $7 billion worth of 25-year bonds, La Nacion reported today, without saying where it obtained the information. The government will also offer the so-called holdouts a seven-year bond for an undisclosed value to cover interest payments it hasn’t made, the newspaper reported.

To contact the reporter on this story: Eliana Raszewski in Buenos Aires at eraszewski@bloomberg.net; Bill Faries in Buenos Aires at wfaries@bloomberg.net

Last Updated: October 6, 2009 18:47 EDT