BUENOS AIRES -- Banking sources said Argentina's creditor banks have elected to convert at least 80% of the country's $23 billion of commercial debt into par-value bonds under the proposed restructuring agreement.

Most of the creditors had reportedly submitted their choices - between the par and discount bond options - by midday Monday, rather than by last Friday's deadline.

Horacio Liendo, Argentina's under secretary for debt, said if the par bonds were widely preferred, new talks with bankers would have to be set because Argentina would not have sufficient collateral.

A U.S. bank representative said, "Nearly all the banks opted for the par bonds," which would have 30-year maturities and pay 4% to 6%.

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