Other contractual features could also support timely and efficient restructurings

• Trust Structures

➢ Trust structures reduce the leverage of minority creditors in a default situation by allowing litigation only postacceleration and requiring sharing of litigation gains.

➢ Use in NY-law governed bonds has increased in recent years but English-law governed bonds do not generally use this structure.

• “Most Favored Creditor” Clauses

➢ Have been used in past restructurings (Argentina, Ukraine) to ensure that among private bondholders, private sector holdouts are not paid more favorable terms

➢ Legal scholars have suggested using the clauses to ensure comparability of treatment both within and across creditors classes (e.g., private and official sector); this would be novel and is untested

➢ Issues include enforceability, monitorability, impact on IMF policy