The United Kingdom government has ruled out changing its law in order to force private lenders to give debt relief to the poorest countries burdened with “staggering” repayments, triggering strong criticism.
The World Bank and the International Monetary Fund have voiced support for legislative action — to “close loopholes for vulture funds,” as the IMF put it — and the Commons International Development Committee made the recommendation.
Persuading the U.K. to act is seen as crucial because London and New York are “the two major legal jurisdictions covering international debt agreements” — and New York state is already considering a law change.
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About the author
Rob Merrick
Rob Merrick is the U.K. Correspondent for Devex, covering FCDO and British aid. He reported on all the key events in British politics of the past 25 years from Westminster, including the financial crash, the Brexit fallout, the "Partygate" scandal, and the departures of Boris Johnson and Liz Truss. Rob has worked for The Independent and the Press Association and is a regular commentator on TV and radio. He can be reached at rob.merrick@devex.com.
