A debt relief program is necessary for economic recovery and the protection of investors. In a recent paper, Miami Herbert Economics Professor Manuel Santos and Zhigang Feng, former Ph.D. student, lay out the economic framework for sovereign debt default.
While the IMF seeks a conventional debt haircut, the Argentinean government prefers a debt restructuring as to minimize negative reputational effects of partial default to global investors. Nielsen stressed that Argentina expects a fair deal from the IMF this time. In his view, the 2018 IMF loan of $57 billion to Argentina focused on supporting the former government of Mauricio Macri, rather than providing the desired stimulus to the ailing economy.
To watch a recording of the meetings held on Nov. 8, 2019, please see video below.
