BUENOS AIRES, March 9 Reuters Argentina has swapped 4.34 trillion pesos 21.66 billion in domestic debt, amounting to around 64 of loans due to mature through June and helping to ease nearterm fears of a debt default as the economy falters under pressure from a devastating drought.

The swap exchanges old debt for new bonds maturing in 2024 and 2025, according to an economy ministry statement Thursday.

In this way, the uncertainty about the debt maturities of the coming months is cleared up, helping to preserve the sustainability of the Treasury debt, the ministry said.

Argentina had initially hoped to swap around half of its total debt due, an official source told Reuters on the condition of anonymity earlier this week.

Between banks, insurers and companies, the swap volume would be between 3 and 3.5 trillion pesos around 17 billion, they said, adding that swapping anything above 50 will already be a great achievement.

The swap, first announced Monday, prompted global rating agency SP to slash Argentina39;s local currency rating to 39;SDSD39; selective default from 39;CCCC39; Thursday. It also downgraded Argentina39;s national rating to 39;SD39; from 39;raCCC39;.

Argentine stocks and bonds also fell Thursday as investment funds flocked for the exit following news of the debt swap, which aims to ease market uncertainty in an election year and amid a stalling economy.

Though the debt swap is technically voluntary rather than a forced restructuring, the agency and…