scholarly journals Collective Action Clauses in Sovereign Bond Contracts and Investment Treaty Arbitration – An Approach to Reconcile the Irreconcilable

2014 ◽  
Vol 4 (2) ◽  
Author(s):  
Tomoko Ishikawa
Keyword(s):  
Collective Action ◽  
Sovereign Bond ◽  
Investment Treaty ◽  
Collective Action Clauses ◽  
Investment Treaty Arbitration

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

Policy Papers ◽  
2015 ◽  
Vol 15 (53) ◽  
Author(s):  
Keyword(s):  
Collective Action ◽  
Sovereign Debt ◽  
Progress Report ◽  
Executive Board ◽  
Sovereign Bond ◽  
Sovereign Bonds ◽  
Ongoing Work ◽  
Voting Procedures ◽  
Key Features ◽  
Collective Action Clauses

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.

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