Single-Limb Collective Action Clauses and the European Stability Mechanism Reform

In December 2019, the euro Summit did not approve the amendments to the eSM treaty because of a disagreement among Member States on debt restructuring as a requirement for stability support in the case of unsustainable debt and questionable capacity of repayment null In this context, a key role is played by single-limb CACs which permit restructuring across all the bond series null on the one hand, this facilitates the restructuring process and...