Economics
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
This article is for subscribers only.
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.