Developing Country Debt (Restriction of Recovery) Bill

In progress

Currently at: 2nd reading in the Commons.

Originated in CommonsUpdated 20 October 2009

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Long title

A Bill to regulate the recovery of the defaulted sovereign debt of developing countries; and for connect purposes.

Summary

<p>The Bill seeks to regulate the recovery of sovereign debts of developing (low and middle income) countries that have defaulted on their external debt. It targets &lsquo;vulture funds&rsquo;, which buy up defaulted sovereign debt at a discounted rate then attempt to recover the full amount, including fees, through the courts. The Bill would:</p><ul><li>limit the maximum recoverable amount to that initially paid for the debt, plus interest or charges as specified in the Bill<br></li><li>introduce reporting requirements, with institutions requiring UK courts&rsquo; permission (copied to the UK Government and UK-based representative of the country concerned) before recovery proceedings for defaulted debt can begin<br></li><li>require institutions to disclose beneficiaries of recovery proceedings <br></li><li>require a vulture fund to declare payments or gifts given by it or its colleagues to the developing country&rsquo;s Government.</li></ul>

Progress through Parliament

  1. 1st reading· Commons

    6 May 2009 – 6 May 2009

  2. 2nd reading· Commons

Source: UK Parliament Bills API. Bill ID: 477.