The Argentine government has made an official proposal to foreign investors holding $9bn in bonds the country defaulted on, BBC News reports.

After five days of negotiations in New York, it offered to pay 75% of the amount awarded by U.S. courts in 2012.

The long-standing dispute has restricted the country's access to international credit markets.

The investors bought the bonds at heavily discounted rates after the country's economy collapsed in 2002.

Argentina has now offered $6.5bn to settle the dispute, said court-appointed mediator Daniel Pollack.

"This is the first time Argentina makes a formal offer to the holdouts," said Argentina's government in a statement.