Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.


Term of the day


In debt restructuring agreements, a haircut is a percentage reduction of the amount that will be repaid to creditors. For example, when Argentina defaulted on its bonds in 2001 it agreed restructuring terms with over 90 per cent of its creditors which involved haircuts of between 45 per cent and 75 per cent. 


haircut in the news

In March 2013 the term haircut was applied to a levy of about 10 per cent proposed by European leaders on deposits held in bank accounts in Cyprus. The levy intended to...