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Collective Action Clause
A collective action clause (CAC) allows a supermajority of bondholders to agree to a debt restructuring that is legally binding on all holders of the bond, including those who vote against the restructuring. Bondholders generally opposed such clauses in the 1980s and 1990s, fearing that it gave debtors too much power. However, following Argentina Argentina, officially the Argentine Republic, is a country in the southern half of South America. It covers an area of , making it the List of South American countries by area, second-largest country in South America after Brazil, the fourt ...'s December 2001 default on its debts in which its bonds lost 70% of their value, CACs have become much more common, as they are now seen as potentially warding off more drastic action, but enabling easier coordination of bondholders. During the Greek government-debt crisis, the Greek government imposed, with the support of the IMF and ECB, a retroactive CAC with a threshold of 75%. That ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Supermajority
A supermajority is a requirement for a proposal to gain a specified level of support which is greater than the threshold of one-half used for a simple majority. Supermajority rules in a democracy can help to prevent a majority from eroding fundamental rights of a minority, but can also hamper efforts to respond to problems and encourage corrupt compromises at times when action is taken. Changes to constitutions, especially those with entrenched clauses, commonly require supermajority support in a legislature. In consensus democracy the supermajority rule is applied in most cases. __TOC__ History The first known use of a supermajority rule was in juries during the 100s BC in ancient Rome. In some cases, two thirds of jurors had to confirm they were ready to take a decision before the matter went to a simple majority vote. Pope Alexander III introduced the use of supermajority rule for papal elections at the Third Lateran Council in 1179. In the Democratic Party of the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bond (finance)
In finance, a bond is a type of Security (finance), security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to provide cash flow to the creditor (e.g. repay the principal (i.e. amount borrowed) of the bond at the Maturity (finance), maturity date and interest (called the coupon (bond), coupon) over a specified amount of time.) The timing and the amount of cash flow provided varies, depending on the economic value that is emphasized upon, thus giving rise to different types of bonds. The interest is usually payable at fixed intervals: semiannual, annual, and less often at other periods. Thus, a bond is a form of loan or IOU. Bonds provide the borrower with external funds to finance long-term investments or, in the case of government bonds, to finance current expenditure. Bonds and Share capital, stocks are both Security (finance), securities, but the major difference between the two is that (capital) stockholders h ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Debt Restructuring
Debt restructuring is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can continue its operations. Replacement of old debt by new debt when not under financial distress is called " refinancing". Out-of-court restructurings, also known as s, are increasingly becoming a global reality. Motivation Debt restructuring involves reduction of debt and an extension of payment terms and is usually less expensive than bankruptcy. The main costs associated with debt restructuring are the time and effort spent negotiating with bankers, creditors, vendors, and tax authorities. In the United States, small business bankruptcy filings cost at least $50,000 in legal and court fees, and filing costs in excess of $100,000 are common. By some measures, only 20% of firms survive Chapter 11 bankruptcy filings. Historically, debt restr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Argentina
Argentina, officially the Argentine Republic, is a country in the southern half of South America. It covers an area of , making it the List of South American countries by area, second-largest country in South America after Brazil, the fourth-largest country in the Americas, and the List of countries and dependencies by area, eighth-largest country in the world. Argentina shares the bulk of the Southern Cone with Chile to the west, and is also bordered by Bolivia and Paraguay to the north, Brazil to the northeast, Uruguay and the South Atlantic Ocean to the east, and the Drake Passage to the south. Argentina is a Federation, federal state subdivided into twenty-three Provinces of Argentina, provinces, and one autonomous city, which is the federal capital and List of cities in Argentina by population, largest city of the nation, Buenos Aires. The provinces and the capital have their own constitutions, but exist under a Federalism, federal system. Argentina claims sovereignty ov ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Greek Government-debt Crisis
Greek may refer to: Anything of, from, or related to Greece, a country in Southern Europe: *Greeks, an ethnic group *Greek language, a branch of the Indo-European language family ** Proto-Greek language, the assumed last common ancestor of all known varieties of Greek **Mycenaean Greek, most ancient attested form of the language (16th to 11th centuries BC) **Ancient Greek, forms of the language used c. 1000–330 BC **Koine Greek, common form of Greek spoken and written during Classical antiquity ** Medieval Greek or Byzantine Language, language used between the Middle Ages and the Ottoman conquest of Constantinople ** Modern Greek, varieties spoken in the modern era (from 1453 AD) *Greek alphabet, script used to write the Greek language *Greek Orthodox Church, several Churches of the Eastern Orthodox Church *Ancient Greece, the ancient civilization before the end of Antiquity * Old Greek, the language as spoken from Late Antiquity to around 1500 AD *Greek mythology, a body of myth ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
European Central Bank
The European Central Bank (ECB) is the central component of the Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#International use, most important central banks with a balance sheet total of around 7 trillion. The Governing Council of the European Central Bank, ECB Governing Council makes monetary policy for the Eurozone and the European Union, administers the foreign exchange reserves of EU member states, engages in foreign exchange operations, and defines the intermediate monetary objectives and key interest rate of the EU. The Executive Board of the European Central Bank, ECB Executive Board enforces the policies and decisions of the Governing Council, and may direct the national central banks when doing so. The ECB has the exclusive right to authorise the issuance of euro banknotes. Member states can issue euro coins, but the volume must be approved by the EC ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bill H
Bill(s) may refer to: Common meanings * Banknote, paper cash (especially in the United States) * Bill (law), a proposed law put before a legislature * Invoice, commercial document issued by a seller to a buyer * Bill, a bird or animal's beak Places * Bill, Wyoming, an unincorporated community, United States People and fictional characters * Bill (given name), a list of people and fictional characters * Bill (surname) * Bill (footballer, born 1953), Brazilian football forward Oswaldo Faria * Bill (footballer, born 1978), Togolese football forward Alessandro Faria * Bill (footballer, born 1984), Brazilian football forward Rosimar Amâncio * Bill (footballer, born 1999), Brazilian forward Fabricio Rodrigues da Silva Ferreira Arts, media, and entertainment Characters * Bill, the villain of the '' Kill Bill'' films * Bill, one of the protagonists of the ''Bill & Ted'' films * A lizard in Lewis Carroll's ''Alice's Adventures in Wonderland'' * A locomotive in ''The Railway Serie ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
EFSF
The European Financial Stability Facility (EFSF) is a special purpose vehicle financed by members of the eurozone to address the European sovereign-debt crisis. It was agreed by the Council of the European Union on 9 May 2010, with the objective of preserving financial stability in Europe by providing financial assistance to eurozone states in economic difficulty. The Facility's headquarters are in Luxembourg City, as are those of the European Stability Mechanism. Treasury management services and administrative support are provided to the Facility by the European Investment Bank through a service level contract. Since the establishment of the European Stability Mechanism, the activities of the EFSF are carried out by the ESM. The EFSF is authorised to borrow up to €440 billion, of which €250 billion remained available after the Irish and Portuguese bailout. A separate entity, the European Financial Stabilisation Mechanism (EFSM), a programme reliant upon fund ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
European Stability Mechanism
The European Stability Mechanism (ESM) is an intergovernmental organization located in Luxembourg City, which operates under public international law for all eurozone member states having ratified a special ESM intergovernmental treaty. It was established on 27 September 2012 as a permanent firewall for the eurozone, to safeguard and provide instant access to financial assistance programmes for member states of the eurozone in financial difficulty, with a maximum lending capacity of €500 billion. It has replaced two earlier temporary EU funding programmes: the European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism (EFSM). Overview The Treaty Establishing the European Stability Mechanism stipulated that the organization would be established if member states representing 90% of its capital requirements ratified the founding treaty. This threshold was surpassed with Germany's completion of the ratification process on 27 September 2012, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Eurozone
The euro area, commonly called the eurozone (EZ), is a Monetary union, currency union of 20 Member state of the European Union, member states of the European Union (EU) that have adopted the euro (Euro sign, €) as their primary currency and sole legal tender, and have thus fully implemented Economic and Monetary Union of the European Union, EMU policies. The 20 eurozone members are: : Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The seven non-eurozone members of the EU are Bulgaria, the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden. They continue to use their own national currencies, although all but Denmark are obliged to join once they meet the euro convergence criteria. Bulgaria is targeting to join the eurozone on 1 January 2026. Bulgaria is expected to become the 21st eurozone member from January 1, 2026. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
