Elusive Certainty - Implications of Donegal v. Zambia
International Financial Law Review, pp. 31-34, 2007
6 Pages Posted: 8 Mar 2010 Last revised: 28 Mar 2011
Date Written: 2007
On February 15, the English High Court opened a novel chapter in sovereign debt litigation. The judgment in Donegal v. Zambia suggests that national courts may grant discretionary debt relief to heavily indebted developing countries. Donegal sued for $55 million despite acquiring the debt for only $3.2 million at the time when Zambia was scheduled to receive substantial debt relief under the Heavily Indebted Poor Countries Initiative (“HIPC Initiative”). The judgment represents a partial victory since the court affirmed Zambia’s liability in principle.
Keywords: HIPC, Zambia, holdout, sovereign debt, Donegal, creditor
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