Progress Report on Inclusion of Enhanced Contractual Provisions in International Sovereign Bond Contracts
Policy Papers, September 18, 2015
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- Progress Report on Inclusion of Enhanced Contractual Provisions in International Sovereign Bond Contracts
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Bibliographic details
- Published: September 18, 2015
- Series: Policy Papers
Executive Board endorsement and purpose
- 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.
- Purpose: support the Fund’s ongoing work on sovereign debt restructuring by promoting contractual provisions that facilitate orderly restructurings.
Key contractual features endorsed
- Modified pari passu clause:
- Explicitly excludes the obligation to effect ratable payments.
- Enhanced collective action clause (CAC) with a menu of voting procedures:
- Single-limb voting procedure that enables bonds to be restructured on the basis of a single vote across all affected instruments.
- Two-limb aggregated voting procedure.
- Series-by-series voting procedure.
Publication and metadata
- Publication title: Progress Report on Inclusion of Enhanced Contractual Provisions in International Sovereign Bond Contracts
- Date on page: September 18, 2015
- Subjects listed: Bond issues; Bonds; Collective action clauses; Debt restructuring; Sovereign debt
- Citation text on page: Progress Report on Inclusion of Enhanced Contractual Provisions in International Sovereign Bond Contracts , (USA: International Monetary Fund, 0) accessed 9/18/2026
Source: IMF web landing page content as provided.