In negotiating with new debt providers, the private party may propose, or be asked to agree to, financing covenants that are less favourable than those that applied to the initial debt finance. For example, the new lender may impose greater restrictions on modifications, or different triggers for finance defaults that may increase the likelihood of such defaults occurring. Contract directors should seek advice on whether these financing covenants are current market standard, as this could mean the covenants are acceptable where the risk remains with the private party under the financing documents (as opposed to the State being directly exposed to this risk under the project deed). To the extent that such changes restrict the future rights of the government party, it should be compensated so that it is no worse off.