Liberal Democrat Shadow International Development Secretary, Lynne Featherstone MP has called for the Government to take action over ‘immoral’ vulture funds that prey on heavily indebted countries.
Her comments come after Donegal International was awarded $15.5m from Zambia in a case at London’s High Court.
Vulture funds buy the debt obligations of poor countries at a fraction of their face value in the hope of enforcing them through the courts at full value.
Lynne Featherstone said:
“Gordon Brown has said this is immoral but so far it’s been all talk and no action.
“The Government needs to take a stand and use its influence in the IMF to help devise an internationally binding system to ensure companies can’t prey on heavily indebted developing countries in this way.
“The Government claims they advise countries to help them avoid being used by vulture funds. That is all well and good – but they must take stronger action to help the countries that are already in this horrible and immoral financial prison.”