Debt Relief (Developing Countries) Act 2010
| Jurisdiction | UK Non-devolved |
| Citation | 2010 c. 22 |
| Year | 2010 |
(1) This section applies for the purposes of this Act.(2) “The Initiative” means the enhanced Heavily Indebted Poor Countries Initiative of the International Monetary Fund and the World Bank.is public or publicly guaranteed,is external,is a debt of a country to which the Initiative applies or a potentially eligible Initiative country, andin the case of a debt of a country to which the Initiative applies, is incurred before decision point is reached in respect of the country.(4) For the purposes of subsection (3) treat a debt incurred after commencement as incurred before commencement if (and so far as) it replaces one incurred before commencement.(5) For the purposes of subsection (3) (d) treat a debt incurred after decision point as incurred before decision point if (and so far as) it replaces one incurred before decision point.that the International Monetary Fund and World Bank identify as potentially eligible for debt relief under the Initiative, andin respect of which decision point has not been reached.(7) Decision point is regarded as reached in respect of a country if it is so regarded for the purposes of the Initiative.(8) For the meaning of other expressions used in subsection (3) , see section 2.(9) “Country” includes a territory.(10) “Commencement” means the commencement of this Act.(11) If the terms of the Initiative are amended after commencement in such a way as to change a relevant eligibility condition, this Act has effect as if they had not been so amended.(12) In subsection (11) “relevant eligibility condition” means a condition as to the level of a country's income or debt or the size of its economy that must be met in order for the country to be eligible for debt relief under the Initiative.(1) The expressions used in section 1(3) have the meaning given below.a liability that falls to be discharged otherwise than by the making of a payment,an obligation to repurchase property that arises under an agreement for the sale and repurchase of property (whether or not the same property) , anda liability of the lessee under a finance lease (except a liability so far as relating to the operation or maintenance of property subject to the lease) .a liability to pay for goods or services that arose on the delivery of the goods or the provision of services,a liability that falls to be discharged in less than a year from the time it was incurred (“a short-term debt”) unless the short-term debt is within subsection (4) , ora liability incurred after commencement that replaces anything that was (at the time of the replacement) within paragraph (a) or (b) .more than a year before commencement, and(where decision point has been reached in respect of the country concerned) more than a year before decision point.the country or any part of it (or the government of the country or any part of the country or any department of any such government) ,the central bank or other monetary authority of the country, ora body corporate controlled (directly or indirectly) by anything within paragraph (a) or (b) .(6) In subsection (5) (a) references to part of a country include any municipality or other local government area in the country.it is guaranteed,before commencement, andwhere decision point has been reached in respect of the country, before that point was reached, andthe debt would be a public debt of the country if it had been incurred by the guarantor.(8) If the conditions in subsection (7) (a) to (c) are met as regards part of a debt, that part is regarded as a publicly guaranteed debt of the country concerned.if decision point was reached in respect of the country before commencement, at the time that point was reached, orotherwise, at commencement.(10) If in any proceedings there is an issue as to whether a debt is a qualifying debt, treat the debt as external unless it is proved in those proceedings that it is not external.a qualifying debt, orany cause of action relating to a qualifying debt,(2) For the meaning of “the relevant proportion”, see section 4.a claim for a qualifying debt, ora claim in respect of a cause of action relating to a qualifying debt.(4) But the amount recoverable under a compromise agreement is limited to the amount that would be recoverable in respect of the claim if the agreement had not been made (and subsection (1) applied to the claim) .that changes the terms for repayment of a debt (“the rescheduled debt”) in such a way as to reduce its net present value, orby virtue of which a debt (“the original debt”) is replaced by a debt (“the new debt”) whose net present value is less than the net present value of the original debt.(6) But the amount recoverable in respect of the rescheduled debt or the new debt is limited to the amount that would be recoverable in respect of the initial debt if the refinancing agreement had not been made (and subsection (1) applied to that debt) .(7) In subsection (6) “the initial debt” means the debt mentioned in subsection (5) (a) or (as the case may be) the original debt.(8) References in this section to the amount recoverable include the amount recoverable on the enforcement of any security.(9) This section applies even if the law applicable to the qualifying debt, or to any compromise agreement, refinancing agreement or security, is the law of a country outside the United Kingdom.(1) In this Act any reference to the relevant proportion, in relation to a qualifying debt, is to be read as follows.(2) Where the qualifying debt is one to which the Initiative applies, the relevant proportion is—where—A is the amount the debt would be if it were reduced in accordance with the Initiative (on the assumption, if it is not the case, that completion point has been reached, for the purposes of the Initiative, in respect of the country whose debt it is) , and B is the amount of the debt without it having been so reduced. (3) Where the qualifying debt is a debt of a potentially eligible Initiative country, the relevant proportion is 33%.a judgment on a relevant claim given by a court in the United Kingdom before commencement,a foreign judgment given (whether before or after commencement) on a relevant claim, andan award made
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