Can vulture funds be prevented from preying on poor countries?

from Guardian

UK legislation on vulture funds has already had an impact, when Liberia last year reached agreement to repay just over 3% of face value of $43m in debt. The case was brought by two Caribbean-based vulture funds, Hamsah Investments and Wall Capital Ltd, over a debt dating back to the 1970s. The case sparked a furore when the high court ordered Liberia to repay the full debt in 2009. The case mobilised debt campaigners, who pushed for a change in the law – resulting in the Debt Relief (Developing Countries) Act 2010 being passed.

The law, a world first, requires commercial creditors to comply with the terms of international debt cancellation schemes, which specify a single discount rate for creditors to ensure equal treatment. The law applies to the UK courts and ensures that public money given towards debt cancellation is not diverted to private investors.

However, debt campaigners point out that UK legislation applies only to the 40 Hipc countries and applies to cases before 2004. It is also due to expire next year, unless renewed.

The 1% & their fund managers ruthlessly exploit legal loopholes for profit – even at the cost of environmental destruction & human lives!  The Occupy Movement must expose, challenge & curb such behaviour.


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