Argentina’s economy minister confirmed bondholders’ worst fears, telling them to brace for significant losses as the country restructures its debt amid an economic crisis, Bloomberg News reported. Martin Guzman warned on Wednesday that holders of Argentine debt will probably be disappointed by the restructuring, without providing specifics on how steep losses could be. “It’s necessary to have a deep debt restructuring,” he said at a congressional hearing where he provided his most detailed comments about debt strategy since taking office in December. “It’s clear that there’s going to be frustration on the part of bondholders.” Investors have been fearing an aggressive debt restructuring since August, when President Alberto Fernandez defeated pro-market leader Mauricio Macri in primary elections by a far wider margin than any poll had forecast. The peso and sovereign bonds prices have since plunged. Still the statement will come as a blow to those holding out hope that Fernandez would opt for a more moderate stance.
