>The Paris Club is often harder than the LC, because it has a "comparable
>treatment" clause, which prevents a borrower from giving any other creditor
>a better deal than that which is given to the Paris Club (as the Germans
>are currently pointing out in relation to Russia, debtors can give non-PC
>creditors a worse deal, but not a better one). This effectively creates a
>creditors' cartel and gives the PC a degree of leverage. The London Club,
>since it has more members and less permanent resources, has nothing like
>the same amount of cartel power.
I thought bank debt typically had clauses preventing debtors from playing creditors off against each other - is "negative pledge" the jargon? An injury to one (creditor) would be seen as an injury to all.
Back in the 80s, it seemed like Citibank's William Rhodes and a handful of sidekicks would handle the negotiations. Are things different now with more bond, and less bank, debt?
Doug