Bill · started in the Commons
Developing Country Debt (Restriction of Recovery) Bill
A Bill to regulate the recovery of the defaulted sovereign debt of developing countries; and for connect purposes.
In progress
Current stage: 2nd reading (Commons)
The story so farThe Developing Country Debt (Restriction of Recovery) Bill was introduced in the House of Commons on 6 May 2009 by Ms Sally Keeble (Labour). It is now at second reading in the House of Commons. Second reading is the first debate on the overall principle of the bill; if the bill clears it, detailed committee scrutiny follows.
What the bill does
<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 ‘vulture funds’, 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’ 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’s Government.</li></ul>
Progress through Parliament
- 1st reading Commons 6 May 2009
- 2nd reading Commons Current
Source: the official bill page. Last updated 20 Oct 2009.