Collective Action Clauses Reexamined: Thank You Argentina

6 Pages Posted: 16 Sep 2020

See all articles by Mark Walker

Mark Walker

Guggenheim Securities

Alice Chong

Guggenheim Securities

Date Written: August 3, 2020

Abstract

The back and forth negotiation of Argentina’s most recent efforts to restructure its sovereign debt has given rise to novel issues of interpretation and use of collective action clauses (CACs), accompanied by charges and countercharges of abuse by Argentina of this important addition to the international financial architecture, on the one hand, and an alleged desire on the creditor side to walk back advances in the orderly restructuring of sovereign debt for narrow reasons of self-interest. Beneath the noise, however, there are important, previously unexamined issues of the policies underlying CACs and a need to improve the drafting of these clauses in order to ensure that they in fact further the policies that inspired them.

Keywords: Argentina, collective action clause, redesignation, sovereign debt, restructuring

JEL Classification: F34, G15, K12

Suggested Citation

Walker, Mark and Chong, Alice, Collective Action Clauses Reexamined: Thank You Argentina (August 3, 2020). Available at SSRN: https://ssrn.com/abstract=3666495 or http://dx.doi.org/10.2139/ssrn.3666495

Mark Walker

Guggenheim Securities ( email )

330 Madison Avenue
New York, NY 10017
United States

Alice Chong (Contact Author)

Guggenheim Securities ( email )

330 Madison Avenue
New York, NY 10017
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
79
Abstract Views
309
rank
376,842
PlumX Metrics