Argentina launches new debt deal

Latin America's third-largest economy is trying to rebuild its reputation with international investors and sell bonds to raise money.

It wants to buy $20bn in outstanding defaulted bonds held by investors who refused a previous offer in 2005.

Argentina defaulted on $95bn of bonds in 2001, a record amount at the time.

Since the 2001-2002 economic crisis, Argentines have seen a president chased through the streets by rioting mobs and seven subsequent presidents come and go.

But Argentina's economy has recovered relatively strongly. The country wants to raise at least $1bn in fresh capital.

Nestor Kirchner had restructured most of the debt, and repaid money borrowed by the International Monetary Fund.

Economy Minister Amado Boudou said investors would have to take losses of at least 65% to enter the new swap, an even deeper discount than what was offered in 2005.

The 2005 offer was accepted by some 75% of bondholders who owned the defaulted debt.

Last year, Ms Fernandez pledged to repay the entire $6.7bn of defaulted debt still owed to foreign governments.

She said Argentina would use about one-sixth of the nation's reserves to pay the debt.