What does CAC stand for?

Themes include debt sustainability and the development of domestic markets, promoting regional capital markets, recent developments in Paris Club debt restructuring, collective action clauses and sovereign debt restructuring mechanisms, BASEL II and its implications for developing countries, and issues in debt statistics reporting such as external debt statistics from the BIS perspective and INTOSAI guidance on the reporting of public debt.

We noted progress has been made recently in increasing the use of Collective Action Clauses (CACs) in international bond markets.

In terms of better international economic policies, international financial institutions have begun to reform, resulting in greater clarity and predictability in the use of large-scale financing from the International Monetary Fund, the use of collective action clauses in emerging market debt, and the movement toward grants rather than loans at the World Bank.

In addition, Mexico's government issued the first-ever sovereign bond under New York law with a collective action clause that allows a 75% majority to bind all holders to revised repayment terms in a default.

Adoption of Collective Action Clauses by Venezuela Venezuela started including collective action clauses (CACs) in its international bonds issued under New York law in 2003.

The introduction of collective action clauses in new international bond issues of emerging market countries would be helpful in that respect.

Given that more than 90% of public sector market debt now contains collective action clauses, future adjustments to maturities and coupons may be perceived as less politically costly in the event of refinancing difficulties.

75 percent yield and was the first transaction in Central America with a collective action clause.