Who would have thought that finance ministers and central bank
governors of the developed world, and leaders of the
International Monetary Fund would have devoted a significant
portion of their annual meeting in September to the esoteric
subject of bond documentation? The global economic environment
is the weakest it has been in a decade, there is a growing gap
in development levels worldwide and there is a global war
against terrorism. Yet the one-page G-10 communiqué
issued at the meeting did not mention these subjects. Instead
its longest, central paragraph addressed collective action
The Debt Crisis Debate
The Argentine government's debt default, followed by
trouble in other deeply indebted countries, has made the debate over how to handle sovereign debt crises one of the most important topics in the world capital markets. Arnold & Porter's Whitney Debevoise describes how the official sector, investors have positioned themselves on the statutory and contractual approaches. In the end, both will require adjustments.
What are collective action clauses (CACs) and why are they
getting so much attention? Is the attention deserved and will
CACs remain on the agenda going forward?
The official sector has been pursuing initiatives to
strengthen the world's financial architecture for some time.
Part of the effort focuses on crisis resolution. The...
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