Developing countries often presume, for a variety of reasons, that they have limited or no capacity to influence the outcome of negotiations of a loan agreement with an international lender. They often feel that international lenders generally do not subscribe to the viewpoint of borrowers or amend the clauses of the loan agreements. This is a serious misconception. Once the parties are committed to the negotiating process, the existence of convincing reasons, may be guided by national financial and economic considerations, for proposed amendments in the clauses of a loan agreement are difficult to ignore and often find acceptability with the lenders. The preparation and strategy of negotiation plays an important role in determining the outcome.