Argentina announces new debt swap outside US law

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Associated Press

Posted on August 26, 2013 at 8:34 PM

Updated Tuesday, Aug 27 at 12:02 AM

BUENOS AIRES, Argentina (AP) — Argentina's president says she's reopening the country's debt swap, offering new bonds to be paid in dollars in Buenos Aires to anyone still holding defaulted debt a decade after the country's world-record, $100 billion default.

This surprise announcement from Cristina Fernandez on Monday night is her long-awaited "Plan B," her answer to the U.S. federal appeals court that ordered her Friday to pay $1.4 billion in cash to the plaintiffs she calls "vulture funds."

If Argentina keeps refusing to obey U.S. courts, the rest of the country's bond payments could be blocked from the U.S. financial system, forcing the country into another default.

Argentina is appealing to the U.S. Supreme Court, but meanwhile Fernandez proposes that bondholders who want Argentina's dollars get them in Buenos Aires.

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