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Home>Collective Action Clauses: No Panacea for Sovereign Debt Restructurings

Collective Action Clauses: No Panacea for Sovereign Debt Restructurings

Perspectives Content Submission

Fri, 5 Oct 2012

From next year, European countries will resemble emerging economies in a new way: sovereign bonds they issue will include collective action clauses (CACs). These allow a supermajority of bondholders to agree to changes in bond payment terms, which then apply to all bondholders. CACs became popular

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