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

See all articles by Michael Waibel

Michael Waibel

University of Cambridge - Faculty of Law; Lauterpacht Centre for International Law; University of Cambridge - Jesus College

Date Written: 2007

Abstract

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

Suggested Citation

Waibel, Michael, Elusive Certainty - Implications of Donegal v. Zambia (2007). International Financial Law Review, pp. 31-34, 2007 . Available at SSRN: https://ssrn.com/abstract=1566490

Michael Waibel (Contact Author)

University of Cambridge - Faculty of Law ( email )

10 West Road
Cambridge, CB3 9DZ
United Kingdom

Lauterpacht Centre for International Law ( email )

5 Cranmer Road
Cambridge, CB3 9BL
United Kingdom

University of Cambridge - Jesus College ( email )

Jesus Lane
Cambridge, CB5 8BL
United Kingdom

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