NEW YORK -- Argentina and its agent, Citibank, said they have successfully completed payment of around 85% of the interest Argentina owed foreign creditors.

The disbursements were made Friday and totaled approximately $6.6 billion of floating-rate bonds and $636 million of cash.

Under a debt-reduction agreement reached last year, Argentina is paying its interest arrears to creditors with a mix of 12-year government bonds and cash. However, disbursements of the arrears were held up earlier this year after banks were unable to specify which creditors were owed what.

William R. Rhodes, Citibank vice chairman, said the the reconcillation package is substantially completed, with additional amounts expected to be released on Dec. 16.

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