Debt Relief (Developing Countries) Bill: Committee Stage Report
This is a report on the Committee Stage of the Bill. It complements Research Paper 10/17, prepared for the Commons Second Reading of the Bill. The Bill seeks to limit the amount that can be recovered by any commercial creditor of those countries designated as having unsustainable external debts. It 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. At Committee Stage, a new 'sunset clause' was added. The proposed legislation would now expire after one year unless renewed for a further year or made permanent by order.
This is a report on the Committee Stage of the Bill. It complements Research Paper 10/17, prepared for the Commons Second Reading of the Bill. The Bill seeks to limit the amount that can be recovered by any commercial creditor of those countries designated as having unsustainable external debts. It 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. At Committee Stage, a new 'sunset clause' was added. The proposed legislation would now expire after one year unless renewed for a further year or made permanent by order.