International markets are uncertain how to react to Argentina's proposal for the biggest debt swap in history, with some experts proclaiming default and others urging a more restrained reaction.

Domingo Cavallo, Argentina's economy minister, has said that the government wants to swap all of its $95bn (€105bn) in domestic and international debt. But he gave few specifics of the swap, leaving investors in Argentina and around the world uncertain whether a swap would erode the value of their holdings and lead to default.