Debt Relief (Developing Countries) Act

EDM number 1558 in 2010-12, proposed by Frank Field on 09/03/2011.
Categorised under the topic of International development.

That this House is deeply concerned by the November 2010 judgement by a Jersey court in favour of FG Hemisphere Associates LLC, a US distressed debt fund, or vulture fund, that claimed for a debt of $100 million against the Democratic Republic of Congo, which it bought in 2003 for $37 million; notes that the debt was incurred during the rule of dictator Mobutu Sese Seko in the 1980s; records its disappointment that the court ruling was made at a time when the Democratic Republic ofCongo had finally been granted debt cancellation from the World Bank; further notes that at least 54 companies are known to have taken similar legal action against 12 of the world's poorest countries in recent years for claims amounting to over $1.8 billion and congratulates Wirral Trade Justice and the Jubilee Debt Campaign for highlighting this injustice; commends the UK's landmark Debt Relief (Developing Countries) Act, which restricts the ability of vulture funds, who buy developing countries' debt at discounted prices, to sue such countries for historical debts to make massive profits and which has helped to protect the world's poorest countries by keeping vulture funds out of UK courts; further notes that this measure contains a sunset clause which provides for its expiration on 8 June 2011; and therefore calls on the Government to legislate to make this Act permanent and to expand its remit to include Jersey and all other British Crown Dependencies and Overseas Territories.

This motion has been signed by a total of 49 MPs.