Bondholders generally opposed such clauses in the 1980s and 1990s, fearing that it gave debtors too much power.
However, following Argentina'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 financial crisis of 2011–12, the Greek government imposed, with the support of the IMF and ECB, a retroactive CAC with a threshold of 75%.
[2] The new debt is governed by English law and comes with warrants that may provide extra income in years if Greek economic growth exceeds thresholds.
[2][3] In accordance with the treaty establishing the European Stability Mechanism, all bonds issued by Eurozone member states with maturities exceeding one year, issued after January 1, 2013, have a mandatory collective action clause.