THE ROLE OF THE LAWYER IN THE INTERNATIONAL DEBT OPERATIONS OF DEVELOPING
Daniel D. Bradlow
Reference: Document No.6,
- The Lawyer's Function in Debt Management
- The Stages of a Debt Transaction and the Role
of the Lawyer
The purpose of this paper is to describe
the role that lawyers can play in the international debt operations
of developing country borrowers. The central point that the paper seeks
to make is that lawyers can make a significant contribution to both
the borrower's debt management and the negotiating and structuring of
its debt transactions. Borrowers who include lawyers, with an understanding
of international financial law, in their debt management teams are likely
to find that their debt planning is improved because they have an enhanced
1. the regulatory and legal environment applicable to the
2. the legal and regulatory environment applicable to each of its
3. a more detailed understanding of the contractual terms of each
of their debt obligations and the implications thereof for their operations.
In addition, borrowers who include lawyers as
active participants in the process of negotiating and structuring their
debt transactions can, over time, obtain more satisfactory debt contracts.
In order to establish this proposition, the paper
will first briefly discuss the role lawyers can play in debt management.
Thereafter, it will break a loan transaction down into five different
stages and discuss the role that the lawyer can play at each of these
stages. For the purposes of this paper, we will assume that the borrower
is either the sovereign itself or a public sector entity from a developing
country which engages in regular and ongoing external debt operations.
It is important to note that the description of the role of the lawyer
in debt transactions would not change significantly for a lawyer advising
a private sector borrower with large ongoing debt operations.
has been written by Daniel D. Bradlow (Professor and Director, International
Legal Studies Program, American University, Washington College of Law,
Washington D.C.) for UNITAR following his participation as a resource
person in a joint UNrTAR/WAIFEM Sub-Regional Workshop on the Mechanics
of Loan Agreements for West African Nations (Banjul - The Gambia, 3
to 7 May 1999).
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