Status: Draft -- Not PublishedWill be live at 10/31/2022 16:09
Guidance and Explanatory Note – Majority Voting Provisions
The UK Treasury, supported by the IMF, has developed a suite of specimen clauses for inclusion in sovereign loan agreements. The essential element of the policy initiative behind the development of these specimen clauses is to move away from lender unanimity for payment term amendments through inclusion of the majority voting provisions ('MVPs'), which operate at a threshold above the typical majority lender voting threshold. The intention is that such clauses will only apply on loan-by-loan basis and be forward-looking; and take-up is voluntary. Specimen clauses can be tailored on a case-by-case basis as appropriate to the specific loan while providing a reference point to maintain a level playing field.