§ Mr. LoveTo ask the Secretary of State for International Development what assessment she has made of the impact of vulture funds on debt relief for countries; what action she is taking on this issue; and if she will make a statement. [57850]
§ Mr. BoatengI have been asked to reply.
Under the enhanced heavily indebted poor countries (HIPC) initiative eligible countries should receive debt relief from all creditors. However, a number of commercial creditors decline to provide debt relief and sue the HIPC for payment. Vulture funds specialise in purchasing debt at a discount in the secondary market and 369W then suing for repayment in full. At their last meeting, HIPC Finance Ministers raised the issue of lawsuits against them from various creditors in their declaration. The UK Government has proposed that the international community should consider giving technical assistance to any HIPC being sued by a commercial creditor and provide expert financial advice on debt restructuring to prevent future claims.