UPDATE 3-Argentina seals $5 bln bank loan as heads into holdout talks

* Argentina gets $5 bln loan from int'l banks to bolsterreserves

* Deal strengthens negotiating hand as goes into debt talks (Adds increase in reserves, paragraph 6)

By Walter Bianchi and Sarah Marsh

BUENOS AIRES, Jan 29 (Reuters) - Argentina's central banksaid on Friday it had sealed a deal for a $5 billion, one-yearloan from international private banks, bolstering its lowforeign reserves as the country heads into talks with creditorssuing over unpaid debt.

The South American country is virtually shut out of globalcredit markets because of its long-running legal dispute in U.S.courts with creditors over debt it defaulted on in 2002.

President Mauricio Macri, who took office last month, hassaid he hopes to reach an agreement early this year, enablingArgentina to re-gain access to capital markets. In the meantime,his government has secured alternative financing.

This commercial bank loan "facilitates the central bank'scapacity to confront external shocks and thereby avoiddisruption in the local market," the regulator said in astatement.

The loan will be backed by Bonar 2022, Bonar 2025 and Bonar2027 notes in the central bank's portfolio, it added.

Argentina's foreign reserves rose to $30.071 billion onFriday from $25.241 billion the previous day, the central banksaid in a separate statement after the local markets' close.

The interest rate on the commercial bank loan will be theLibor rate plus 6.15 points, said a source at a bank involved inthe deal who asked not to be identified.

The banks HSBC, JPMorgan Chase & Co. andSantander will contribute $1 billion each, whileDeutsche Bank, BBVA, Citibank and UBS will lend 500 million each, the source said.

Argentina has said it will present a proposal to settle itslegal debt battle next week to the U.S. court-appointed mediatorDaniel Pollack.

Finance Secretary Luis Caputo, a former Deutsche Bankexecutive, has already traveled to the United States to meetwith Pollack next week, the Finance Ministry said on Friday.

"There will be informal meetings on Monday and Tuesday withPollack and possibly with the holdouts," the ministry said. "Wedo not know yet when the proposal will be presented. Thesemeetings will be held without lawyers present."

Argentina originally hoped the talks would take place theweek of Jan. 25 but the holdouts asked for them to be postponeda week due to "logistical difficulties". (Writing by Sarah Marsh; editing by Grant McCool, Bernard Orr)