 Bloomberg -- Argentinas debt is trading below the value established under this weeks restructuring accord, with many investors skeptical the government has negotiated enough fiscal legroom to pull the economy out of its deep recession.While the century bond issued in 2017 leaped 7.7 on Tuesday to 46.21 cents on the dollar, it remained far short of the average value of the deal, estimated at about 55 cents on the dollar. Even shorter maturity bonds remain far from those levels.For some investors, even that limited rally makes little sense. Argentina is facing an economic contraction of about 12 this year, and a deficit that has ballooned with the extra fiscal spending to fight the pandemic. Unlike other Latin American countries, which have also seen their debt rebound, Argentina has rampant inflation, limiting the scope for monetary policy to pull the economy out of recession.As such, the government may have offered investors too much.This isnt hyperbolic. This is the worst negotiated sovereign restructuring Ive ever seen, said Diego Ferro, formerly of Greylock Capital Management LLC, now founder of M2M Capital in New York. Investors got a massive freebie on this one.Part of the problem was that the restructuring accord was based on an economic assessment conducted with the International Monetary Fund before the pandemic. Those parameters for the economy no longer apply.The fiscal deficit totaled more than 3.4 billion in every month in the second quarter, up from just 62 million in January. Moreover, new cases of the coronavirus and deaths are hitting record highs, even as much of the country remains in lock-down.How can everyone be so certain this is the right deal when you still have the economy closed?, said Ferro. Someone got taken in.Printing MoneyThe governments response to the pandemic garnered widespread support among the population, but has many economists worried.President Alberto Fernandez has presented old recipes to address old problems, and we all know how that ends up, said Patrick Esteruelas, head of research at Emso Asset Management. Theyre relying on the printing press, increasing money supply and creating significant inflationary pressures.A slump in the currency has been avoided by strict capital controls, which in turn have crimped imports and the economy.How Fernandez plans to escape the quagmire is unclear. The nation desperately needs to grow its international reserves, combat inflation that is expected to surpass 40 this year, and reignite the economy.Yet, Economy Minister Martin Guzman said Tuesday that the government has no intention of presenting an economic plan any time soon. For Ferro, the whole process has been done backwards.The logical way was to ask for a standstill, have an agreement with the IMF, come up with an economic plan, Ferro said. Restructurings are usually an afterthought to having an economic program. You dont make the restructuring the cornerstone.Updates with net present value in the second paragraph and a new headlineFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.2020 Bloomberg L.P. 