Front Matter Page
SECOND PROGRESS REPORT ON INCLUSION OF ENHANCED CONTRACTUAL PROVISIONS IN INTERNATIONAL SOVEREIGN BOND CONTRACTS
January 2017
IMF staff regularly produces papers proposing new IMF policies, exploring options for reform, or reviewing existing IMF policies and operations.
The report was prepared by IMF staff and sent to the Executive Board for information on December 27, 2016.
The IMF’s transparency policy allows for the deletion of market-sensitive information and premature disclosure of the authorities’ policy intentions in published staff reports and other documents.
Electronic copies of IMF Policy Papers are available to the public from http://www.imf.org/external/pp/ppindex.aspx
International Monetary Fund
Washington, D.C.
© 2017 International Monetary Fund
Front Matter Page
SECOND PROGRESS REPORT ON INCLUSION OF ENHANCED CONTRACTUAL PROVISIONS IN INTERNATIONAL SOVEREIGN BOND CONTRACTS
December 27, 2016
Approved By Sean Hagan and Ratna Sahay
Prepared by Legal Department and Monetary and Capital Markets Department led by Yan Liu (LEG). The team comprised Chanda DeLong (LEG), Michael Papaioannou and Kay Chung (both MCM).
Contents
INTRODUCTION
ENHANCED CONTRACTUAL PROVISIONS
A. Collective Action Clauses
B. Pari Passu Provision
C. Market Impact
OUTSTANDING STOCK
BOND GOVERNANCE STRUCTURES
OUTREACH
OTHER DEVELOPMENTS
NEXT STEPS
FIGURE
1. Mexico and Romania: Secondary market pricing impact of enhanced CACs
ANNEX
I. Incorporation of Enhanced Sovereign Bond Clauses