Bill > S07458

This bill aims to support international debt relief initiatives for developing countries by establishing new rules for recovering sovereign debt claims in New York state. The legislation creates a legal framework that limits the recoverability of debt claims against eligible developing countries participating in international debt relief programs. Specifically, the bill defines key terms like "international initiative" (which includes programs like the Heavily Indebted Poor Countries Initiative and the G20 Debt Service Suspension Initiative) and "eligible claim" (payment claims for borrowed money). Under the new law, debt claims can only be recovered if they meet three key conditions: (1) they comply with established burden-sharing standards that ensure equitable treatment among all creditors, (2) they meet robust disclosure requirements including transparency about the claim's terms, and (3) they are recoverable to the same extent that the U.S. federal government would recover the claim under the applicable international initiative. The bill's underlying intent is to support fair and effective debt relief for developing countries, prevent disproportionate financial burdens on New York taxpayers, and promote more transparent and collaborative approaches to managing sovereign debt challenges. By implementing these provisions, New York follows the United Kingdom's approach to supporting international debt relief initiatives since 2010.

Justice

https://www.nysenate.gov/legislation/bills/2025/S7458