Politicians, anti-poverty groups and churches unite against vultures funds.

Phil Willis MP (LibDem, Harrogate and Knaresborough) has signed up to the campaign to stop so called “Vulture Funds” at a reception held in parliament this week. Vulture funds are where a small number of firms buy up the defaulted debts of the world’s poorest countries, often at low prices. They then take countries to court to aggressively recoup the debts at full value for immediate repayment, often in UK and US courts.

This action allows a small number of investors to take money which poor countries urgently need to spend on health and education for their citizens. Charity Jubilee Debt Campaign has been working to outlaw this practice for over a year.

Earlier this year Greater Manchester MP Andrew Gwynne decided to do something about the problem. He introduced a Private Member’s Bill – something open to only a handful of MPs every year – to prohibit vulture fund activity against the poorest countries in the world. The Bill will receive its Second Reading on Friday 26 February and has support from MPs from across the political spectrum.

Phil Willis said,
“This Bill would represent a major step forward in tackling these funds. This proposal would heavily restrict the actions of creditors that do not participate in debt relief, dealing with the so-called “Vulture Funds.” For too long, some companies have been allowed to get away with exploiting the debt relief received by developing countries for their own profit; taking vital resources away from those that need it most. I aim to support this Bill and put a stop to it.”

Jubilee Debt Campaign campaigned to highlight a case last November in which vulture funds won £20million against Liberia, one of the poorest countries in the world, in a UK court.

Celebrity and star of West End hit Priscilla Queen of the Desert Jason Donovan supports the campaign. He said,
“Like most people I want to see an end to global poverty. I certainly support this campaign, which aims to reduce third world debt help and make a real difference to the lives of some of the poorest people in the world.”

Nick Dearden, Director of Jubilee Debt Campaign said:
“We have seen that nothing short of legislation will stop these investors from their outrageous practices. It’s great that so many MPs have expressed support for this Bill, and will be taking time out of their diaries to make sure it becomes law. We have to make sure vulture funds are stopped from feeding off the poorest.”

ENDS

Notes for editors

1. For more on vulture funds see: www.jubileedebtcampaign.org.uk/vultures.

For more information and interviews contact: Jonathan Stevenson,
Jubilee Debt Campaign, 020 7324 4726, 07818 651124.