Debt Relief (Developing Countries) Act 2010

1 Meaning of “qualifying debt” etc

(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.

(3) “Qualifying debt” means a debt incurred before commencement that—

(a) is public or publicly guaranteed,

(b) is external,

(c) is a debt of a country to which the Initiative applies or a potentially eligible Initiative country, and

(d) in 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.

(6) “Potentially eligible Initiative country” means a country—

(a) that the International Monetary Fund and World Bank identify as potentially eligible for debt relief under the Initiative, and

(b) in 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.