One key clause in Uruguay's proposed collective
action clauses closes a loophole that Mexico left open in its
own bonds: the question of whether the issuer could use exit
consents on the payment terms of bonds with CACs. Exit
consents, even on non-payment terms of bonds, are generally
considered coercive and rather bad manners, even if a
necessary evil for countries seeking to restructure their
bonds.
Exit consents are used when a...
