LOCAL MP FORCES GOVERNMENT CLIMB-DOWN OVER "VULTURE FUNDS"
August 10, 2009 12:24 PM
Andrew pictured with a Vulture to promote the anti-vulture funds bill
Vulture funds which buy up poor countries' debt cheaply, and then go to court to demand full repayment are to face a clampdown by the government, after pressure from Hazel Grove MP Andrew Stunell.
Mr Stunell, along with a cross-party group of 12 MPs, introduced a Bill in the House of Commons earlier in the year attempting to ban vulture funds and other creditors from taking legal action in UK Courts against some of the poorest countries in the world.
The Treasury has now prepared a consultation document on the issue, with legislation expected to be introduced later this year that will provide important safeguards for 40 developing countries and curb the worst abuses of investment funds which make fortunes by buying up the debts of the poorest countries and then selling them at a profit.
Commenting, Andrew Stunell, who is also a member of the influential International Development Committee said:
"This is a huge victory for the campaign on vulture funds. The government proposals would protect 40 of the poorest countries in the world from exploitation. Already 12 of these countries have been the target of over £1.4 billion worth of dodgy claims.
"But it is also an important victory for the British Tax Payer as well, as it protects UK public funds that go to developing countries in aid, ensuring the money reaches the people it is intended to help. At present, money that is meant to help provide schools, hospitals and other essential services for poor people can be creamed off by the vulture funds.
"I would of course like the government to go further, and will be keeping up the pressure on them to do so, but these proposals are a major step forward.
"It is good news for the poorest people in the world, and for the British taxpayer, too.
ENDS
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