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UPDATE: Argentina Econ Min:Plan Debt Holdouts Offer In 30 Days

By Laurence Norman, Of DOW JONES NEWSWIRES

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ST. ANDREWS, Scotland -(Dow Jones)- Argentina hopes to make an offer to holdouts from its 2005 debt restructuring in the next 30 days, Economy Minister Amado Boudou said Saturday.

At a press conference after a Group of 20 finance ministers meeting, Boudou said he hopes there will be a debt roadshow over the next three weeks in Italy, Germany, New York, London and possibly Japan and that an offer could come soon after that.

"We think that in 30 days we could get all the administrative and legal steps to put a formal offer," he said.

He said Argentina still hopes to differentiate in its debt offer to the holdouts between retail investors and institutional investors if possible.

"Yes, we think that there are two very different segments of creditors and we think that is a good idea to try to design different offers," he said.

However he added that the main aim would be to maximize takeup of the offer.

On the $6.7 billion debt owed by Argentina to the Paris Club of government creditors, Boudou said Argentina is in constant contact with members of the group and that he hopes for a deal this year.

"We are speaking with the secretary of the Paris Club and trying to find a solution that could be acceptable for the creditors and" is good for Argentina.

However he ruled out reports that Argentina might issue a bond to swap for the debt.

"It is not our plan," he said.

He said there would need to be a creative solution to reach a deal with the Paris Club and that one solution would be for Argentina to repay the Paris Club debt over a number of years.

However, a source close to the Paris Club said Argentina hadn't approached the group with a concrete proposal on the repayment of debt.

"Argentina simply hasn't made any move toward the Paris Club on that end," the source said. The official said the Paris Club is happy to resume talks if Argentina comes to them.

Boudou also said that if Argentina wraps up a deal with the holdouts, it hopes to issue a bond in international markets in the first quarter of 2010. He would not say how big the bond offering would be.

He said the proceeds of the issuance would be for a program of investment in utilities, the water system and electric grid.

On other issues, Boudou said he is not worried by the dollar's weakness. He said the peso exchange rates is "very under control" and that he doesn't the local currency to "jump" higher against the dollar.

Argentine officials met in Scotland this week with International Monetary Fund Managing Director Dominique Strauss-Kahn.

-By Laurence Norman, Dow Jones Newswires; 44-207-842-9270; laurence.norman@ dowjones.com

  (END) Dow Jones Newswires
  11-07-091327ET
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