Argentina to Ask Congress to Re-Open Debt Swap, Cronista Reports

Argentina’s government this week will send Congress a proposal to re-open the country’s debt swap, newspaper Cronista Comercial reported, without saying how it obtained the information.

Economy Minister Hernan Lorenzino is planning to change the so-called lock law and allow investors who didn’t participate in a 2010 debt restructuring to obtain similar terms if they swap defaulted bonds, Cronista said.

Argentina filed a motion asking for a stay on a Nov. 21 U.S. court ruling that said holders of defaulted debt claiming $1.33 billion should be paid all of the principal and interest they are owed.

A formula that offered holdouts the same terms as investors who accepted the 2010 restructuring would be a “remedy” that’s consistent with Argentine law and the government could present that proposal to Congress, according to the court filing.

To contact the reporter on this story: Camila Russo in Buenos Aires at crusso15@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net