Public Information Notice: IMF Board Discusses Collective Action Clauses in Sovereign Bond Contracts
July 26, 2002

Collective Action Clauses in Sovereign Bond Contracts—Encouraging Greater Use
June 6, 2002

The Design and Effectiveness of Collective Action Clauses

Prepared by the Legal Department

June 6, 2002

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  1. Existing Provisions and Structures
    1. Overview
    2. Majority Restructuring Provisions
    3. Majority Enforcement Provisions

  2. New Provisions
    1. Representation Clauses
    2. Initiation Clauses
    3. Aggregation Provisions

  3. The Scope of Sovereign Debt to be Covered
    1. Domestic Debt
    2. Syndicated Bank Debt


  1. Examples of Majority Restructuring Provisions and Majority Enforcement Provisions Contained in Bond Issued under Trust Deeds and Fiscal Agency Agreements
  2. The Collective Representation Clause