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Argentina Gets IMF’s Seal of Approval to Hit Bondholders Hard

  • Fund calls Argentina debt unsustainable after week-long review
  • Says private creditors need to make a meaningful contribution
Alberto Fernandez
Alberto FernandezPhotographer: Sarah Pabst/Bloomberg
Updated on

For all their turbulent relationship over the decades, the International Monetary Fund just gave Argentina the backing it needed to hit its bondholders with a significant haircut.

Argentina’s debt load is “unsustainable” and private creditors would need to make a “meaningful contribution” for the country to regain its footing, the IMF said in a statement on Wednesday, adding that no fiscal adjustment by itself would be sufficient to reverse the situation.