The "Pari passu" ruling had a grave impact on Argentina's route out of economic difficulty. The issue perceived by Argentina was that the agreement also included a "rights upon future offers" ("RUFO") clause. The effect of such a clause was that, if a later settlement paid more, or on better terms, all existing settlements would be repaid on the improved terms. This was intended to reassure bondholders that it was safe to settle early, and reduce the incentive to hold out for a better later offer.