The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Europe: Bond buyers brace for eurozone debt restructuring

Not if, but when; Debt burden numbers don’t lie

A full-scale European sovereign debt restructuring is nigh-on inevitable, say leading bond buyers. Speaking at Euromoney’s annual Bond Investors Congress in London, a series of international investors argued that it was now not a question of "if" but "when" and "how".

"It’s coming," said Louis Gargour, chief ­investment officer at London-based hedge fund LNG Capital. Speaking before a late-March meeting of eurozone leaders tasked with finding a permanent solution to the crisis, Gargour said that policymakers "will come up with too little, too late".

The numbers on the European debt burden don’t lie, said Sanjeev Handa, senior managing director and head of global public markets at TIAA-CREF, a New York-based pension fund. "The first problem is the amount of debt, the second the interest burden. If this were a corporate balance sheet the question would be ‘can you grow into it?’" he said. "The answer is no: the primary deficits are just too big."

As evidence: Greece’s debt-to-GDP ratio is set to climb to 150%, while its equivalent tax take is just 50% of Germany’s.

Majority expect rescheduling

Asked if some form of rescheduling was inevitable, just two members of a 400-strong audience of fixed-income specialists voted "no".

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree