ABSTRACT
The central issues of the international debt phenomenon depend very much upon the perceptions and perspectives of the parties. All parties no doubt have regard for the overall health of the international financial system but many borrowers would be more inclined to hope for a reform of that system. The access of many developing countries to the international financial markets was both sharply and rapidly reduced, and their reserve holdings were consequently substantially affected. The negotiating process of restructuring typically involves many lenders, categories of debt and sometimes more than one currency, and the adoption of varied and Innovative solutions. The sharing of set-offs and other non-rateable payments on loans in different currencies creates problems which careful drafting may overcome. The drafting process also requires careful attention to the laws of the lender states, particularly to ensure compliance and consistency with security and bank regulatory laws.
