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served as its deputy chairmen. A senior executive at Citibank,
William Rhodes (Rhodes), represented Citibank in its role as the
BAC's chairman.
The BAC also appointed certain coordinating banks in various
sectors of the international financial community. The BAC members
and coordinating banks would advise foreign lenders of the status
of the negotiations. Also, any foreign lender could raise any
issue in connection with the proposed phase II restructuring that
it wished with the BAC.
The BAC adopted a set of operating rules concerning its
deliberations and its negotiation of the phase II restructuring.
The BAC would formulate its position only by reaching a unanimous
consensus among the BAC members. It would further negotiate with
the Brazilians only those issues pertaining to the phase II
restructuring that it considered to be of importance to all of the
foreign lenders, as a group, in effectuating the restructuring; it
would not negotiate with the Brazilians those issues that it felt
concerned only some of the foreign lenders. However, on those
issues which it would not negotiate, but which it believed were
important issues to certain foreign lenders, the BAC would advise
the Brazilians of the issue's existence and its importance to some
of the foreign lenders.
During the phase II negotiations, perhaps the most contentious
issue the BAC dealt with was the issue of new money to be provided
to Brazil. Under the proposed phase II CGA, all foreign lenders
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