Argentina Reopens Guaranteed Loan Swap

The Argentine government has reopened the swap for its guaranteed loans, known as prestamos garantizados. The terms of the deal involve a 2% haircut and the issuance of a new 5-year ARP-denominated bullet note linked to the Badlar rate, which is being called Bonar 14, according to a Barclays report. The government should save some $1.6bn net of the costs related to the new issue, according to the shop. In 2010, the net savings could add up to $400m. Some $2.9bn worth notes are eligible for the swap, including those held by foreigners, says Barclays, which says its view on the sovereign credit remains relatively unchanged in the medium term.