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sovereign debt, debt restructuring, Collective Action Clause, CACs


In the wake of the Eurozone sovereign debt crisis, the European financial authorities announced last November that all Eurozone sovereign bonds issued after mid-2013 must contain an identical collective action clause (CAC) in order, if necessary, to facilitate a restructuring of those

CACs in sovereign bonds have been the subject of considerable attention over the last ten years. They were introduced into sovereign bonds governed by U.S. law only in early 2003. Yet a surprising number of versions of the clause can be found in modern sovereign bonds.

The history of the research and development of this contractual provision is, or at least ought to be, relevant to the drafting of the model European
version of the clause.


The version in this repository is the pre-print. The citation used here reflects the final version of this article and can be found at:

Library of Congress Subject Headings

Public debts, Debt relief