PREFACE


This paper provides specific and detailed advice and information to developing country borrowers as to how to approach the subject of negotiating clauses in loan agreements. Additionally, this paper draws from presentations and discussions at a Joint UNITAR/UNDP/UNCTAD/Ministry of Finance National Workshop on the Legal Aspects of Debt Negotiations for the Government of Vietnam (Hanoi, 18 to 21 October 1999). This was also the first workshop conducted by UNITAR as part of its on-going training and capacity building activities in Vietnam in the area of legal aspects of debt, financial management and negotiation.

This workshop was addressed specifically to government officials from Vietnam involved in international loan negotiations and invited thirty four participants from the Ministry of Finance, State Bank of Vietnam, Ministry of Justice, Ministry of Industry, Ministry of Transport and Communications, Ministry of Construction, Ministry of Planning and Investment as well as parastatals involved in borrowing.

The theme of the workshop focused on loan agreements and an appreciation of negotiating specific clauses within these agreements. An attempt was also made to expose participants to issues relating to external borrowing and the development process at a general level, and to a taste of drafting clauses in loan agreements at a specific level. A mix of both lawyers and non-lawyers in the group elicited a lively exchange of views and experiences during the four-day period. The involvement of high-level resource persons with in-depth experience in negotiating loan agreements and yet having different backgrounds and perspectives in international borrowing especially made the workshop discussions interesting and balanced.

In a nutshell, this paper provides practical insight and hints to government officials involved in debt negotiations on a daily basis. This paper should also be useful to the beginner as it provides a wealth of experience from the perspective of a government official who has spent numerous years negotiating agreements from the borrowers' side.

As part of this initiative, UNITAR had the privilege of collaborating with the UNDP Hanoi office, UNCTAD, and the Vietnamese Ministry of Finance (External Finance Department), for which it is greatful. UNITAR also wishes to thank the Swiss State Secretariat for Economic Affairs (SECO, Bern) which is financing UNITAR's contribution to this global training initiative in Vietnam. Last but not least, UNITAR thanks Dr. Vinod K. Agarwal for having contributed to this project by sharing his experience and insight with us.

We hope that this paper will be useful as well as challenging to the readers.


Marcel A. Boisard
Executive Director of UNITAR