Argentina's former economy minister Cavallo absolved in debt swap case

Economic Indicators Associated Press

A court in Argentina has absolved former Economy Minister Domingo Cavallo in a case over the country's 2001 debt swap.

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Cavallo had faced charges of illegal negotiations in the hiring of banks to carry out the $30 billion swap ahead of the country's economic collapse.

A Buenos Aires court said Monday that the 68-year-old didn't commit any crime in the failed operation aimed at preventing the country from going into default.

Prosecutors had requested a three-year jail sentence for Cavallo and a lifetime ban from holding public office. They maintained that Cavallo had favored some banks during the swap and harmed the government by charging a commission for the deal.

Details of the court ruling will be released on Oct. 14.