Rescheduling loans is easier than renegotiating payments on bonds because the same FIs typically form loan syndicates that create cohesiveness in negotiations.

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Loan syndicates allow for a consolidated approach to negotiations and make rescheduling loans easier compared to bonds, which typically have a larger number of individual bondholders making renegotiation more challenging.

Rescheduling Loans Is Easier Than Renegotiating Payments on Bonds Because