Tom Brake MP Demands an End to Debt "VULTURES"

5.33.52pm BST (GMT +0100) Fri 29th May 2009

Tom Brake MP is joining forces with a number of local residents and the Jubilee Debt Campaign to stop vulture funds profiteering from Third World debt.

Tom is supporting a bill going through Parliament to stop financial institutions from making multi-million pound profits out of the debts of some of the poorest countries in the world.

The Developing Country Debt (Restriction of Recovery) Bill, is a ten minute rule bill with cross-party support, which had its second reading on the 6th May 2009.

In recent years, at least 54 companies are known to have taken legal action against 12 of the world's poorest countries. Most notably the vulture fund Donegal International, based in the British Virgin Islands, won $15.5 million through the courts in repayment for Zambian debt it bought for $3.3 million.

The Bill provides for:

• An end to hedge funds and other investors buying up Third World debt at cut-rate prices and then suing developing country governments through the UK courts for the full amount.

• Reporting arrangements to the UK and developing country governments.

• Transparency over who is involved in the funds.

• Anti-corruption measures.