The House of Commons is to debate a bill to restrict the activities of 'vulture funds' - investment companies, often based off-shore, which buy up cheap poor country debts, and then sue for massive profits.
A new report from the World Bank and International Monetary Fund has revealed that ‘vulture funds’ and other commercial creditors are chasing a staggering $1.8 billion from some of the world’s poorest countries - after they have had debts cancelled by rich countries.
On the opening day of the G8 summit, leading international debt cancellation advocacy groups declared that the deal leaders negotiated 2 years ago has not solved the debt crisis. They also issued a strong call to the G8 to stop the activities of 'vulture funds'.
Aid to developing countries has increased dramatically over the last few years – but it is less well known that developing countries often haemorrhage as much money as they receive in aid, or more, says a leading UK churches' development agency - highlighting the problem of so-called 'vulture funds'.