19 August 2011
Vulture Funds sue some of the world's poorest countries for full repayment of debts they buy up cheaply. In April 2010 an Act of Parliament - the Debt Relief (Developing Countries) Act - was passed which restricts the ability of Vulture Funds to sue the poorest countries in UK courts, a favourite jurisdiction of the funds. The Act represents the first of its kind anywhere in the world, and attracted cross-party support in the UK.
Without such legislation enacted in Australia, these so called ‘Vulture Funds’ are free to profiteer from poor country debts in Australian courts. Last year one did just that in New South Wales.
The global financial crisis has exposed an international financial system that urgently needs cleaning up. Combating Vulture Funds is a practical first step toward a global economy that works for the majority of people, not a small number of unethical investors.
Visit the Jubilee Australia website to learn more about what you can do to stop the ‘Debt Vultures’.