WE ARE NO DEBTORS! WE ARE CREDITORS OF A HISTORICAL, SOCIAL AND ECOLOGICAL DEBT!
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Landmark Law Passed to Tackle Vulture Funds |
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Friday, 09 April 2010 |
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FOR IMMEDIATE RELEASE
8 APRIL 2010
Landmark Law Passed to Tackle Vulture Funds
UK becomes first country to ban Third World Debt profiteering in final
hours of Parliamentary session
A landmark bill to protect the poorest countries in the world from
profiteering by so-called vulture funds became law today after passing
in the House of Lords during the wash-up at the end of the Parliamentary
session.
Jubilee Debt Campaign welcomed the successful passage of the Debt Relief
(Developing Countries) Bill, which is the worlds first law to restrict
the ability of Vulture Funds to sue some of the worlds poorest countries
for full repayment of debts that they have bought up cheaply.
Last November two Vulture Funds were awarded $20 million in the High
Court from Liberia the second poorest country in the world - for a debt
dating back to the 1970s. This law is expected to make that verdict
unenforceable.
There was an outcry last month after the bill was blocked at third
reading by an unidentified Conservative MP thought to be backbencher
Christopher Chope. But the Government made time for the Bill in the
wash-up, after securing cross-party agreement with a sunset clause which
will mean the law has to be reassessed to be made permanent in a years time.
International support for the bill has been expressed by Archbishop
Desmond Tutu, President Ellen Johnson Sirleaf of Liberia, and President
Bharrat Jagdeo of Guyana.
Nick Dearden, Director of Jubilee Debt Campaign, said:
This is a landmark law. With this act, the UK has become the first
country in the world to stop vulture funds using its courts to profiteer
from poverty. It will mean the poorest countries in the world can no
longer be attacked by these reprehensible investment funds who grow fat
from the misery of others. We now call on other governments,
particularly the US administration, to take similar steps to outlaw
vulture practices.
We hope this is the first step towards creating a more just financial
system, which operates for the great majority of people, not a tiny
minority of unethical investors.
Andrew Gwynne MP, Sponsor of the bill said:
I am absolutely thrilled that my bill has been passed into law. It was
completely unacceptable that a small number of companies were ever
allowed in the UK courts to profiteer off the third world debt market.
These vulture funds were completely unjust and it is to the credit of
this parliament, and the efforts of the Jubilee Debt Campaign that we
have finally managed to pass this law. I said I would put a stop to
these vulture funds, and I did.
Sally Keeble MP, who took the bill through the House of Commons, said:
These vulture funds are international predators. Their victims are the
poorest people in the world. It is excellent that at this stage it has
been possible to get this piece of legislation on to the statute books
to outlaw the activities of these vulture funds. This was a victory for
a broad based campaign led by jubilee debt and other NGOs which brought
this issue to public attention.
For more information contact JDC media line: 020 7324 4724; 07818 651124
Notes for editors
(1) Vulture Funds are private investment companies which take advantage
of the relaxed laws in British courts to buy up Third World debt at
dramatically reduced prices and sue poor countries for their full value
plus costs. In the process, companies make excessive rates of profit.
(2) Jubilee Debt Campaign is a UK coalition demanding 100% cancellation
of unpayable and illegitimate developing country debts. For more
information see www.jubileedebtcampaign.org.uk.
(3) The Debt Relief (Developing Countries) Bill is a Private Members
Bill sponsored by Andrew Gwynne MP. Owing to Mr Gwynnes illness, Sally
Keeble has steered the bill through the House of Commons. It was
objected to at Third Reading on 12 March,
http://services.parliament.uk/bills/2009-10/debtreliefdevelopingcountries.html.
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