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BUENOS AIRES, Sept 2 (Reuters) - Argentina's benchmark stock index, the MerVal .MERV, turned positive in early afternoon trade on Tuesday after President Cristina Fernandez said she would use foreign reserves to pay off $6.7 billion in defaulted Paris Club debt.
The MerVal was up 0.28 percent at 1,784 points at 12:25 p.m. local time (1525 GMT), after falling to as low as 1,749 points earlier in the day. (Reporting by Jorge Otaola; Editing by Dan Grebler)