Argentina looks for fresh sources of financing with issuance of 2-year bond for $1 billion

Economic IndicatorsAssociated Press

Argentina is launching a new two-year sovereign bond for $1 billion.

The bond issue launched Thursday will be denominated in U.S. dollars but paid in local pesos. The Bonad 2016 has an annual coupon of 1.75 percent.

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It comes a time when Argentina is desperately looking for fresh sources of financing. The economy is in recession, Central Bank reserves are dwindling and the government is grappling with one of the world's highest inflation rates.

A U.S. court ruling recently pushed Argentina into its second technical default in 13 years. The country has been kept from global credit markets since its record $100 billion default in 2001.