If the government presents a credible reform plan, resolves differences over financial sector losses and reaches an IMF deal, Eurobond holders could see a 75% haircut, Goldman Sachs estimates.

 The new government also promised to negotiate with foreign creditors to restructure its Eurobonds. International investors including BlackRock Inc., Ashmore Group Plc and Fidelity formed an ad hoc group of bondholders after the default, advised by lawfirm White & Case, but, without a fully-fledged government in place for so long, no serious talks took place.

A sovereign debt restructuring typically involves a haircut on the debt’s nominal value and an extension of maturities, in hopes that the economy will recover and the government will eventually be able to pay or refinance.  

If the government presents a credible reform plan, resolves differences over financial sector losses and reaches an IMF deal, Eurobond holders could see a 75% haircut, Goldman Sachs estimates.