Argentina needs protection against challenges

Buenos Aires - Argentina said on Thursday that it needed financial protection against challenges it could face from holders of its restructured debt if it is to negotiate with holdout investors suing it, or a stay to the court ruling forcing payment.

"It was said that if the plaintiffs do not provide such guarantees, a stay remains the best option to allow advances towards a solution in conditions that are just, fair and legal," the economy ministry said in a statement.

Argentina says the so-called Rufo clause in the terms of its 2005 and 2010 restructuring deals prohibits it from paying better returns to bond holders who rejected the large write downs.