The government of Argentina is planning to repay $2.17 billion debt owed to international financial organizations via central bank reserves and funds held in the treasury, The Wall Street Journal reports. The Economy Ministry may redeem the debt in 2011 by taking $2.12 billion from the reserves and $52.9 million from the treasury.
The central bank will get a 10-year non-transferable promissory note in exchange for the reserves from the ministry. The government will pay an interest rate on the borrowed money equal to the same rate the Central Bank of Argentina earns on its reserves.
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