Argentina default spreads to Par bonds, raising acceleration risk

BUENOS AIRES/NEW YORK (Reuters) - Argentina's debt default spread to its Par bonds on Friday after the country failed to complete an interest payment, raising the risk that creditors could demand that its cash-strapped government immediately repay all of its debt. Argentina had already defaulted in July on its Discount notes, but holders of the Par bonds are more likely to claim the accelerated payment of the principal because they are trading at a steeper discount to their original value. An acceleration could leave Argentina facing claims of up to $30 billion, more than it holds in foreign reserves. "We were asked in very theoretical terms what our thoughts were on acceleration," said one source.

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