BUENOS AIRES, Oct 23 (Reuters) - Argentina sold $983 million worth of new two-year, dollar-linked bonds on Thursday, the Economy Ministry said on Thursday.
The new bond, denominated in U.S. dollars and paid in the local peso currency, would have an annual coupon of 1.75 percent and the obligations would be paid at the country’s official exchange rate.
The issue comes at a difficult time for Latin America’s No. 3 economy. The government defaulted on it global bonds in July after spurning a U.S. court decision ordering full repayment to “holdout” hedge funds that declined to participate in a pair of restructurings that followed Argentina’s 2002 debt crisis.
Investors who exchanged bonds in 2005 and 2010 were paid less than 30 cents on the dollar.
Inflation is expected by private economists to end this year at about 40 percent, one of the highest rates in the world, while onerous currency and trade controls weigh on economic activity. (Reporting by Nicolas Misculin, writing by Sarah Marsh, editing by G Crosse)