BUENOS AIRES, Argentina, July 18 (Reuters) - Argentina will issue $9.35 billion in bonds by July 29 to compensate banks whose dollar-denominated savings and loans were converted into pesos at mismatched rates, creating billions of dollars in losses, Economy Minister Roberto Lavagna said on Thursday.

The solvency of the entire Argentine financial system is at risk since the government switched banks' dollar loans into pesos at parity but changed dollar deposits to pesos at a rate of 1.4 to the dollar earlier this year, after devaluation.

The government has promised banks compensation after they incurred billions of dollars in charges because of the mismatch but the exact dollar value of the package was not officially known until Thursday's announcement.

Lavagna did not say, however, when the bonds mature or provide any other details of their terms. (Reuters)