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7.11.07
Liberal Democrat Shadow International Development Secretary, Lynne Featherstone MP has uncovered figures showing the millions of pounds English courts have ordered poor countries to pay out to so-called ‘Vulture Funds’.
English courts have awarded £236.7 million to the funds, which buy up poor countries’ debt and then sue for full value plus interest in court.
The statistics, which were released by the World Bank following a request from Lynne Featherstone, reveal the true extent of Britain’s involvement in Vulture Funds.
Lynne Featherstone said:
“Hundreds of millions of pounds are being taken from the poorest people on this planet - money that is desperately needed for basic services like schools, hospitals and sanitation.
“It is like sending the bailiffs round to a homeless person and then roughing them up for their spare change. It brings shame on the British legal system and the foundation of fairness that it was built on.
“Gordon Brown talks at length about justice for Africa. His Government should explore ways of creating an internationally binding system to ensure companies can’t prey on heavily indebted developing countries.
“Failing that, in the interim, the Government should start looking at how our national laws can be changed to bar Vulture Funds from using Britain as a tool to milk heavily indebted poor countries. One solution could be to hold the debts in non-tradable securities - known as VISTA trusts.”
Comments?
If you have any comments on this story, please let me know in the space below, or you can email me at lynne@lynnefeatherstone.org
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