My translation into English of the Belgian vulture fund Act.

I have reported earlier on the 2015 Belgian Act tackling the enforcement of vulture fund litigation. In preparation of a paper on the topic, I have had to translate the (relevant parts of: I have omitted intro- and extroductory parts) the Act. I thought I might as well share. Source reference would be much appreciated if you do employ the translation below.


Article 2

When a creditor pursues an unfair benefit by purchasing Government bonds or receivables, his rights vis-à-vis the debtor State are limited to the price paid for the bonds or receivables.

Regardless of the law governing the legal relationship between the creditor and the debtor State, no enforcement title can be obtained in Belgium and no protective or enforcement measure can be taken in Belgium at the request of such creditor in connection with a payment to be received in Belgium if such payment procures an unfair benefit vis-à-vis the creditor.

Pursuing an unfair benefit exists where there is clear disproportion between the purchase price and the bonds or securities’ face value, or between the purchase price of the bonds and the sums actually claimed by the creditor.

Such clear disproportion  must be supplemented by at least one of the following criteria for it to qualify as an unfair benefit:

–         Bankruptcy or suspension of payments of /by the debtor State was established, or imminent, when the bonds or receivables were purchased;

–         The creditor has its seat in a State or territory which

a)       Either is included in the list of uncooperative States and territories as established by the Financial Action Task Force (FATF); or

b)       Meets with the definition of tax haven established per Article 307, para 1, fifth indent of the Income Tax Act 1992; or

c)       Is included in a Government list of States unwilling to negotiate an agreement which in accordance with relevant OECD standards, provides as of 2015 for the automatic exchange of data with Belgium on fiscal and banking matters;

–         The creditor systematically employs litigation to obtain reimbursement of the bonds previously purchased;

–         The creditor has refused to co-operate with the establishment restructuring measures for the debtor State;

–         The creditor has abused the debtor State’s weakened position so to negotiate a clearly imbalanced repayment agreement; or

–         Repayment in full of the sums claimed by the creditor would have a clearly establishable negative impact on the public finances of the debtor State and could endanger the socioeconomic development of its population.


This Act does not affect the application of international Treaties, the law of the European Union, or bilateral Treaties.


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