Warning issued against ‘vulture funds’
The Jubilee Debt Campaign suggests vulture funds are targeting Greece
Two years after a successful campaign against ‘vulture funds’, the NGO, Jubilee Debt Campaign, has warned that the European debt crisis will give them a new opportunity to take advantage of poverty.
Vulture funds buy up the debts of countries in difficulty and then sue for full repayment. Quakers were involved in a multifaith campaign in 2010 that led to a law restricting the power of vulture funds to claim money through British courts (see ‘Campaigners celebrate UK action on vulture funds’, 16 April 2010).
The law related to an official list of ‘heavily indebted poor countries’ – meaning that European countries are excluded. The Jubilee Debt Campaign has suggested that vulture funds are now turning their attention to Greece.
A number of funds have bought up Greek debt cheaply, from creditors who fear it will not be repaid. By refusing to agree to a write-down, these companies will receive either full payment from the Greek government or the insurance money that results from a default.
The Jubilee Debt Campaign warned that ‘the lives of millions of people’ could be ‘decided by a handful of super-rich speculators’. They called for broad debt cancellation and a crackdown on vulture funds.
