ABSTRACT
During the 1980s however, the overheated economies, particularly in the West, and the easy-term loans promoted by banks in the West provided finance to many, particularly the developing countries, through the same arrangements. Interestingly enough, no identifiable pattern of syndicated loan agreements has emerged although certain clauses seem to be included, as a matter of course in most of such agreements. It is the purpose of this chapter to identify such clauses in order to give negotiators an idea of what they should negotiate, bearing in mind that the purposes of a syndicated loan may require additional clauses in particular circumstances. It must be emphasised that in a syndicated loan arrangement, a borrower's interest and purposes cannot be ignored. The purposes of a syndicated loan arrangement are predominantly two: to assist a borrower to raise funds for meeting the expenses of a project; and to ensure that the lenders also earn profits in the form of interest.
