Is an Uruguay-style, no-haircut debt restructuring feasible?
Presidential favorite Alberto Fernández and his economic team have been trying to present a friendly face to the country’s bondholders, speaking of a mutually-agreed debt re-profiling with no haircuts on capital.
But a growing amount of actors are seeing the proposal as unrealistic, to say the least.
The latest to come out against it has been the International Monetary Fund. According to multiple reports, the Fund is favoring a “Ukraine-style” re-negotiation — with bondholders taking part of the hit in order to make repayment more sustainable — over Fernández’s Uruguay-like proposal, which merely kicks maturities a few years down the road.