BUENOS AIRES -- Argentina plans to hold further talks with creditor banks to determine the mix of par and discount bonds it will issue as part of its debt restructuring, the country's under secretary for debt, Horacio Liendo, said.

The lending bank's reported preference for par bonds, which Argentina might have difficulty collateralizing, has been seen as a potential snag in the previously announcement debt agreement.

Mr. Liendo said in an interview that although only about 15% of creditor banks had made their preference known by early Friday morning, the deadline day, a large majority was apparently opting for par bonds.

Further Talks Expected

Mr. Liendo said the slow response at the deadline made a further around of talks likely.

"A climate has been created among creditors that this reply is not definitive," he said. "They are awaiting another round because they know our capacity [to issue par bonds] is restricted," he said, adding that Argentina wanted an even mix of the two types of bonds.

Under Argentina's rescheduling of $23 billion of commercial foreign debt, banks can opt either for a 35% discount 30-year bullet bond paying 13/16 of a percentage point above the London Interbank Offered Rate, or a 30-year par bullet bond paying 4% to 5.75% in the first six years and 6% thereafter.

The principal on bullet bonds is due on maturity rather than being amortized.

Issues Are Compared

Bankers had said earlier that given current market conditions, the fixed-rate par bond was more attractive and they expected massive acceptance of this option.

Mr. Liendo said the par bond could be better for Argentina in the long run, as it would enable precise budgeting and administration of its foreign debt payments for 30 years.

However, the government did not have sufficient resources to issue a large proportion of par bonds.

He dismissed rumors that Argentina might dip into reserves to meet the bank's par-bound requirement.

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