Introduction
2Qualifying debts: further definitions
1
The expressions used in section 1(3) have the meaning given below.
2
“Debt” includes—
a
a liability that falls to be discharged otherwise than by the making of a payment,
b
an obligation to repurchase property that arises under an agreement for the sale and repurchase of property (whether or not the same property), and
c
a 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).
3
“Debt” does not include—
a
a liability to pay for goods or services that arose on the delivery of the goods or the provision of services,
b
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), or
c
a liability incurred after commencement that replaces anything that was (at the time of the replacement) within paragraph (a) or (b).
4
A short-term debt is within this subsection if it ought to have been discharged—
a
more than a year before commencement, and
b
(where decision point has been reached in respect of the country concerned) more than a year before decision point.
5
A debt is a “public” debt of a country if it was incurred by—
a
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),
b
the central bank or other monetary authority of the country, or
c
a 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.
7
A debt is a “publicly guaranteed” debt of a country if—
a
it is guaranteed,
b
the guarantee was entered into—
i
before commencement, and
ii
where decision point has been reached in respect of the country, before that point was reached, and
c
the 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.
9
A public or publicly guaranteed debt of a country is “external” unless the creditor was resident in the country—
a
if decision point was reached in respect of the country before commencement, at the time that point was reached, or
b
otherwise, 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.