皇冠体育app

皇冠体育app Government took action today to prevent creditors from exploiting the poorest countries in the world through the UK courts.

Legislation to make permanent 皇冠体育app Debt Relief (Developing Countries) Act 2010 was passed in the House of Commons today. 皇冠体育app legislation will stop creditors, including so-called 鈥淰ulture Funds鈥�, from using the UK courts to extract harsh and inequitable payments from poor countries for debts that the companies may in some cases have bought for a fraction of the cost.

皇冠体育app Act could save poor countries an estimated 拢145 million over six years.

皇冠体育app original Debt Relief (Developing Countries) Act 2010 was passed in April 2010, temporarily restricting the actions of 鈥淰ulture Funds鈥� in the UK.聽 This act had a sunset clause meaning that it was due to expire on 7 June. To prevent Vulture Funds returning to the UK, the Government has passed legislation to make the law permanent.

Speaking after the legislation was passed, Danny Alexander, the Chief Secretary to the Treasury said:

Today the Government has acted to stop the unjust actions of a few unscrupulous companies having a huge impact upon the futures of some of the poorest countries in the world.

This act will make sure that Vulture Funds will never again be able to exploit the poorest countries in the world within the UK鈥檚 courts.

International Development Secretary, Andrew Mitchell said:

Giving debt relief to poor countries allows them to spend more on schools, hospitals and other vital services necessary to boost growth and reduce poverty.

It is important that other nations now follow our lead and look at what they can do to address this issue.

Speaking today, Mark Hoban MP, the Financial Secretary to the Treasury said:

It is a privilege to be involved in passing this legislation and making this Act permanent. 皇冠体育app Government is committed to ensuring that the poorest countries are protected from the exploitative practices of Vulture Funds and this Act will ensure that they have no place in the British legal system.

Notes for Editors

1. In April 2010, the UK Parliament passed the Debt Relief (Developing Countries) Act 2010, designed to ensure that all creditors provide their share of debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative. This tackles the problem of a small minority of creditors, often referred to as 鈥淰ulture Funds鈥�, taking HIPCs to court to try to get back the full value of their debts, including interest and penalties for arrears. 皇冠体育app Act had a sunset clause, primarily introduced to review the evidence of the impact of the legislation.

2. 皇冠体育app Government has consulted with representatives of the financial services sector, lawyers, civil society, the international financial institutions (IMF, WB) and HIPC country Governments. 皇冠体育app evidence suggested that the Act had some benefit on HIPCs and no evidence has been found of unintended or adverse effects.

3. 皇冠体育app coalition agreement stated that the Government would 鈥渁ccelerate the process of relieving HIPCs of their debt鈥� and 鈥渞eview what action can be taken against Vulture Funds鈥�.

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