Argentina Project

#Argentina "needs significant debt relief," @FitchRatings says in a new report, but a debt restructuring could prove "challenging," with a possibility of "a protracted process or outright default." https://www.fitchratings.com/site/pr/10112352 … 1/

Without debt relief, @FitchRatings calculates Argentina would need to generate a 3% of GDP surplus, "but political and economic headwinds make this unrealistic." Indeed, Finance Minister Martín Guzmán does not expect any surplus until 2023. 2/

Argentina is in particular trouble because of its "low debt tolerance," according to @FitchRatings, which says the country's "poor repayment record" reflects its heavy borrowing in dollars and limited capacity to earn foreign exchange. 3/