Another loophole is used by companies: in a market known as blue-chip swaps, they buy dollar-denominated sovereign bonds in pesos, transferring them to the UnitedStates where they sell them for dollars.
Such a settlement would remove Moscow from the restrictive provisions of the Johnson Debt Default Act of 1934, thereby permitting the Soviet issuance of bonds and other debt instruments in the UnitedStates and on a dollar-denominated basis.