Debtwire Radio

Debtwire Latin America Mangaging Editor Ben Miller and Head of Research Jonathan Szwarc sat down with Carlos Abadi of Decision Boundaries. The veteran financial advisor provided his thoughts on the debt restructuring paths available to Argentina as its new president takes office. He explained that it is in all parties’ interest that Argentina, the IMF and creditors are flexible and co-operate. Argentina needs to convince the IMF to allow for enhancement of how it calculates the debt-sustainability path, in particular, allowing, at the very least, for the variables to be probabilistic rather than deterministic. If this happens, Abadi says it allows for outcomes in which Argentina’s debt is only “unsustainable,” rather than “unsustainable with high probability.” The mere removal of the “with high probability” tag will allow for a restructuring without a principal haircut.