The swap exchanges old debt for new bonds maturing in 2024 and 2025, according to an economy ministry statement Thursday.
"In this way, the uncertainty about the debt maturities of the coming months is cleared up, helping to preserve the sustainability of the Treasury debt," the ministry said. Argentina had initially hoped to swap around half of its total debt due, an official source told Reuters on the condition of anonymity earlier this week.
"Between banks, insurers and companies, the volume would be between 3 and 3.5 trillion pesos ," they said, adding that swapping "anything above 50% will already be a great achievement." The swap, first announced Monday, prompted global rating agency S&P to slash Argentina's local currency rating to 'SD/SD' from 'CCC-/C' Thursday. It also downgraded Argentina's national rating to 'SD' from 'raCCC+'.