21 December 2009


In November two vulture funds were awarded $20 million from Liberia in the High Court in London, for a debt dating back to the 1970s.

Vulture funds are private companies that try to scavenge profit from the debts of some of the world's poorest countries. They seek to profiteer by buying up the debts of heavily indebted poor countries at a cheap price, then try to recover the full amount, often by suing through the courts.

According to Jubilee Debt Campaign UK at least 54 companies, many based in tax havens, are known to have taken legal action against 12 of the world's poorest countries in recent years, for claims amounting to $1.5 billion.

This means money released by debt relief is going into the pockets of wealthy investors rather than being spent on health and education.

Jubilee Australia is working with the international debt campaign to build a global responsible financing framework — one which incorporates principles of fairness, mutual accountability and transparency.

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