BUENOS AIRES In a sign of renewed international investor confidence in the South American country after five months of uncertainty, Argentina on Friday placed a six-year bond for 500 million euros ($470 million) at an annual yield of 10.77 percent.

In autumn last year Argentina faced a crisis of confidence as growing fears of a default occurring in 2001 made international investors increasingly unwilling to buy Argentine debt.

However, the International Monetary Fund (IMF) in December announced it was opening a $40 billion credit line for Argentina, giving it the breathing space it needed to recover investor confidence.

Argentine Economy Minister Jose Luis Machinea said on Friday that with the bond issue Argentina returned to international capital markets.

"This marks the renewal of the possibility of Argentina placing bonds in markets. I would say that today Argentina can take cash normally, but we are going to do it very gradually, waiting for the situation to improve even more," Machinea said.

He said the 10.77 percent yield was "very good news" because it was below current levels.

The bond will be traded in Luxembourg and Buenos Aires Stock Exchanges under British financial regulations.

(DPA)