Argentina is planning to borrow $2.5 billion from state-run Banco de la Nacion Argentina in 2011, The Wall Street Journal reports. The peso-denominated debt, which will carry an interest rate of Badlar plus 100 basis points, is the refinancing of previous loans.

The Treasury will repay nearly $2.1 billion of the loan during a two-year period with monthly payments starting in January 2012. Argentina’s ministry borrowed $7.5 billion of FX reserves from the central bank in January to pay private creditors, after it borrowed $926.1 million from social security agency, Anses, in December.

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