(Adds details of Argentina's credit history)
BUENOS AIRES May 15 Argentina has authorized
issuance of up to $20 billion in debt instruments to be used in
repo operations under U.S. and British law, the government said
The transactions, to take place under opportune market
conditions, are part of the government's 2017 financial program,
according to a decree published in the official gazette.
A repo, or repurchase agreement, is a form of short-term
borrowing for dealers in government securities.
To get the best terms, the government plans to extend the
legal jurisdiction of the operations to courts in New York and
London, it said. Debt instruments governed by U.S. and British
law are often considered more valuable and fetch higher prices
than obligations subject to Argentine courts.
The country has repeatedly defaulted on its sovereign bonds.
It battled for years with creditors before reaching a settlement
in 2016 that allowed it to re-enter the global credit markets.
President Mauricio Macri was elected in late 2015 on the
promise of "normalizing" Argentina's economy and financial
markets after years of heavy state intervention and non-payment
of international debt obligations under the previous government.
(Reporting by Walter Bianchi; Writing by Hugh Bronstein;
Editing by Jeffrey Benkoe and Sandra Maler)