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Image header Agence Europe
Europe Daily Bulletin No. 10589
ECONOMY - FINANCE - BUSINESS / (ae) euro

04/04/2012 (Agence Europe) - Securities of eurozone countries: CAC decided for eurozone bonds. Following the agreement at the end of March 2012 at the Council of Ministers' Economic and Financial Affairs Committee, the eurozone member states have agreed on the model collective action clauses (CAC) to be included in all new eurozone government securities with maturity above one year issued on or after 1 January 2013. The clauses were adopted following consultation of market participants and other stakeholders. In the event of restructuring of a country's debt, the CACs can force reluctant investors to participate in the write-down once at least 75% of bondholders agree to go along with the write-down, rather than 66% as initially suggested. The European Stability Mechanism Treaty foresees the introduction of CACs. (MB/transl.fl)

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