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IMF Says Argentina’s Debt Levels Unsustainable After Review

  • Fund officials wrap up first technical mission under Fernandez
  • Move marks seal of approval for government to call for haircut
Fears of Argentina Default Loom Large as Traders Dump Everything
Photographer: Erica Canepa/Bloomberg
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Argentina’s debt load is unsustainable, the International Monetary Fund said, offering what is effectively a seal of approval to the government’s plan to saddle creditors with losses in a renegotiation of its liabilities.

A “meaningful contribution” will be necessary from private bondholders to restore the country’s debt sustainability, the IMF wrote in a statement Wednesday following a week of meetings with Argentine officials during its first technical mission in Buenos Aires under Alberto Fernandez’s presidency.