Developing Country Debt (Restriction of Recovery) Bill

<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>