|Department||Office of the Chief Executive|
|Type of consultation||Green paper|
|Deadline for comments||08/12/2011|
About the consultation
In the years leading up to the millennium, some of the poorest countries of the world borrowed money from other countries and from institutions such as the World Bank which they later found impossible to repay. This so-called ‘sovereign debt’ has since proved a major hindrance to their development and in securing a route out of poverty.
In response, the richest countries of the world set in train various international initiatives designed to deal with this problem. These initiatives generally provided for the sovereign debt to be written down or written off as and when the poorer countries showed evidence of their commitment to, and progress in, their own development.
A practice has since emerged where companies, often referred to as ‘vulture funds’, buy sovereign debt at a substantial discount on the open market and then pursue private legal actions against the poorer country to recover the full sum. Their prospects of obtaining full payment are greatly improved as a direct result of other international debt being written off through one or other of the debt-relief initiatives.
The UK has, uniquely, put legislation in place to limit the sums which can be recovered in legal actions of this type. A recent case in the Royal Court has highlighted the question of whether similar limiting legislation should be enacted in Jersey. This consultation seeks to obtain views on such a proposal.
Download Debt Relief Consultation (size 107kb)
How to submit comments to the consultation
All respondents should indicate the capacity in which they are responding (i.e. as an individual, company, representative body etc). If you are responding as a company or representative body, please indicate the nature of your business and/or your clients’ business. Representative bodies should identify on whose behalf they are responding and the methodology they used to gather responses.
Responses and any additional comments may be sent to any of the following:
Debt Relief Consultation, Chief Minister's Department, Cyril Le Marquand House, PO Box 140, St Helier, JE4 8QT
Jersey Finance Limited will co-ordinate an industry response incorporating any matters raised by local firms or entities.
Heather Bestwick, Jersey Finance Limited, 48-50 Esplanade, St Helier, JE2 3QB