Argentina: A sustainability assessment

Slides: Argentina_sustainability note_FINAL

Text, charts, tables, and technical annex: Argentina sustainability note_FINAL

What is needed to restore Argentina to sustainability? An emerging view suggests: (i) domestic law debt—largely held by residents, including the central bank (BCRA)—will carry most of the “sustainability” burden, including through a “haircut” of principal and coupons if necessary; while, related, (ii) foreign law debt—held largely by non-residents—might expect to be reprofiled, but no substantial action in terms of coupon or principal haircut is needed. Continue reading “Argentina: A sustainability assessment”