Argentine lawmakers on Wednesday gave the government permission to enter talks with investors holding $20-billion of the country's defaulted bonds, in a bid to re-enter global credit markets.

Lawmakers passed the government-backed bill, which could see Argentina whittle down its defaulted debt and reenter the global financial mainstream.

By 45 votes to 10, senators opted to unfreeze a suspended 2005 debt restructuring offer that, at the time, promised investors 45-75 percent of their money back after the country defaulted.

The Argentine government of President Cristina Kirchner also said it wants to make a new proposal for the exchange of shares from "hold-out" private creditors who refused to agree to renegotiate the debt in June 2005.

At that time, Argentina negotiated a debt exchange of some 76 percent, or $81.8-billion, but hundreds of other creditors, holding 23.85 percent, declined.

Argentina has been excluded from global capital markets since December 2001, when the country suffered a precipitous economic collapse wiping out personal savings, shredding government finances and prompting Buenos Aires to default on its debt.

Since then, and up to the global financial crisis last year, the country has tackled that debt mountain and the damage to its credit image, helped by gross domestic product growth of around eight percent a year thanks to demand for its commodities, particularly soya.

Argentina is facing payments in 2010 of $13-billion on its maturing debt, after paying $20-billion this year.

Apart from its obligations to private creditors, the country also owes the Paris Club of creditor nations $6.5-billion.

Argentina's total debt, not counting that held by the hold-outs, is more than $140-billion, equivalent to 50 percent of gross domestic product.