NY A10595

Amends New York's Debtor and Creditor Law to establish new Article 10-B limiting recoverability of sovereign debt claims against eligible states participating in international debt relief initiatives.

Restricts enforcement of eligible claims (borrowed money, guarantees, debt-equivalent claims, and judgments) incurred before an eligible state's application to participate in international initiatives like the Heavily Indebted Poor Countries Initiative, Debt Service Suspension Initiative, or Common Framework.

Eligible claims are only recoverable if they comply with burden-sharing standards set by the relevant international initiative, meet robust disclosure requirements including inter-creditor data sharing and public disclosure of material terms, and do not exceed the proportion recoverable by the U.S. federal government under applicable international initiatives.

Declares it New York state policy to support international debt relief for developing countries in debt distress while ensuring fair burden-sharing among all creditors so costs do not fall disproportionately on New York residents and taxpayers.

Takes effect immediately upon enactment.