Progress Report on Inclusion of Enhanced Contractual Provisions in International Sovereign Bond Contracts

Publication Date:

September 18, 2015

Electronic Access:

Free Full text (PDF file size is 574 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

As part of the Fund’s ongoing work on sovereign debt restructuring, in October 2014 the Executive Board endorsed the inclusion of key features of enhanced pari passu provisions and collective action clauses (CACs) in new international sovereign bonds.1 Specifically, the Executive Board endorsed the use of: (i) a modified pari passu clause that explicitly excludes the obligation to effect ratable payments and (ii) an enhanced CAC with a menu of voting procedures, including a “single-limb” voting procedure that enables bonds to be restructured on the basis of a single vote across all affected instruments, a two-limb aggregated voting procedure and a series-by-series voting procedure.

Series:

Policy Papers

Subject:

English

Publication Date:

September 18, 2015

Price:

Free

Format:

Paper

Please address any questions about this title to publications@imf.org