Creditor Policies. (2.20) In the 1980s, commercial banks routinely imposed conditions for the restructuring of their loans, which involved a corresponding restructuring of the Paris Club debt.45 Paris Club members have actively advocated that a sovereign debtor may not accept less debt relief from its non-Paris Club creditors than the amount agreed with the Paris Club. This is referred to as the comparability of treatment principle.46 The principle, in essence, forbids 40 For a discussion of relevant case law, see X. Xxxx, Sovereign insolvency: the bankruptcy ladder of priorities and the pari passu clause, Tijdschrift voor Financieel Recht, March 2012, pp. 60 – 70, at 65-66; X. Xxxxxx and X. Xxxxx, The Three and a Half Minute Transaction: Boilerplate and the Limits of Contract Design (2012, Chicago), at 20-26. 41 Global Law Intelligence Unit, Xxxxx & Xxxxx LL.P, supra note 17, at 8. 42 Those actions included executive-declared moratoriums on payments on the old bonds which had been renewed each year, the fact that Argentina had not made a single payment on the old bonds for six years while timely servicing the new bonds, that Argentina enacted the Lock Law and that Argentina had stated in the prospectuses for the new bonds that it had no intention of making any payments on the old bonds and classified the old bonds as a separate category from the new bonds in its SEC filings. Ibid., at 11.
