Reply #48: Bull, just support the debt vultures for responsible behavior

[IChing]

http://news.bbc.co.uk/2/hi/programmes/newsnight/6362783.stm


“Vulture fund” companies buy up the debt of poor countries at cheap prices, and then demand payments much higher than the original amount of the debt, often taking poor countries to court when they cannot afford to repay. Investigative journalist Greg Palast reports on one company trying to collect $40 million from the government of Zambia after buying its debt for $4 million.

http://www.democracynow.org/article.pl?sid=07/02/15/1528209

In 1999, a 'vulture fund' called Donegal International bought a debt owed by Zambia, originally worth $15 million and then valued at about $30 million, for a knock-down price of $3.3 million. Now it has sued Zambia for the full amount, plus interest and costs – a staggering total of over $55 million! On 15th February 2007, a London court rejected the size of Donegal's claim, but said that under law it is still entitled to something from Zambia.
The exact total is to be determined, but may be as much as $20 million. This would be half of the amount Zambia is due to save from debt relief this year: but it desperately requires all its money to invest in essential social services and infrastructure development.

http://transafricaforum.org/StoptheDebtVultures.html

I have never read such" irresponsible behavior " or opinion from a talking head, get your facts straight.