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FROM THE OFFICE OF PUBLIC AFFAIRS
JS-1144Statement of Under Secretary John B. Taylor Regarding the Decisions by Countries to Issue Bonds with Collective Action Clauses (CACs)
The United States strongly supports and welcomes the decision of a growing number of countries to include collective action clauses in external bond issues. Since the New Year, Chile, Panama, Colombia, Costa Rica and Venezuela completed successful bond issues, including CACs for the first time, while Brazil, Turkey and Mexico's recent issues again included CACs. Belize, Guatemala, Korea, Italy, Peru, Poland, South Africa and Uruguay included CACs in bond issues last year. These nations are helping make collective action clauses the market standard in external sovereign bond issues under New York law, and strengthening the international financial system. The Treasury encourages all countries that issue external bonds under New York law to include collective action clauses in their offerings.