Debt Relief to Poor Countries: Rules v. Discretion

Butterworths Journal of International Banking and Financial Law, May 2010

9 Pages Posted: 20 May 2010 Last revised: 2 Jan 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: May 20, 2010

Abstract

The UK’s Debt Relief (Developing Countries) Act 2010 aims to ensure that UK courts neither give nor enforce a judgment allowing recovery against Heavily Indebted Poor Countries (‘HIPC’) on covered debts exceeding the amount calculated as sustainable under the HIPC Initiative.

Some have objected to the legislation on the grounds that it interferes with creditors’ existing contractual rights and could threaten London as a financial centre by limiting legitimate trading in sovereign debt. The article gives an overview of the Act and explains why the Act closes an important loophole for the effective implementation of multilateral debt relief.

Keywords: debt relief, HIPC, holdout, sovereign debt restructuring, collective action

JEL Classification: K33, 010, F34, K12

Suggested Citation

Waibel, Michael, Debt Relief to Poor Countries: Rules v. Discretion (May 20, 2010). Butterworths Journal of International Banking and Financial Law, May 2010 . Available at SSRN: https://ssrn.com/abstract=1612242 or http://dx.doi.org/10.2139/ssrn.1612242

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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