Debt Relief (Developing Countries) Bill [Bill 17 of 2009-10]
The Bill seeks to limit the amount that can be recovered by any commercial creditor of those countries designated as having unsustainable external debts. The legislation would restrict the activities of so-called 'vulture funds', which buy developing countries' sovereign debt at discounted prices, then seek to recover its value in full through the courts. It would limit successful claims to an internationally agreed level and apply equally to all commercial creditors. It would cover the 40 countries in the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative. Debts incurred after the Bill's entry into force would be excluded.
The Bill seeks to limit the amount that can be recovered by any commercial creditor of those countries designated as having unsustainable external debts. The legislation would restrict the activities of so-called 'vulture funds', which buy developing countries' sovereign debt at discounted prices, then seek to recover its value in full through the courts. It would limit successful claims to an internationally agreed level and apply equally to all commercial creditors. It would cover the 40 countries in the IMF/World Bank Heavily Indebted Poor Countries (HIPC) initiative. Debts incurred after the Bill's entry into force would be excluded.