Early in 2010 the anti-poverty motion scored a exceptional victory. Led by the Jubilee Debt Campaign a coalition of charities, faith groups and NGOs persuaded parliament to pass legislation preventing so called vulture funds from perusing 'heavily indebted poor nations by way of the British courts.
What these vulture funds were performing was breathtakingly wicked. They would strategy a nation or firm that was sitting on a 'third planet debt', generally a debt inured in the 1970s when interest rates had been sky high, to 'buy' the debt at a bargain value (ordinarily 10% of it is face worth). It may well seem strange today but at that time there was so considerably income sloshing around in the West that rich countries utilised heavy handed tactics to sell loans to the rulers of poor, usually corrupt nations.
However these loans were not to supply health or education programmes for the poor but for worthless status symbols or other big scale projects with no lasting benefit for the population. With ever increasing interest rates it became impossible for these poor countries to preserve up their repayments and the debts escalated at an remarkable rate, even even though they were paying vastly much more in interest payments than they had been receiving in aid.
Forty years later those corrupt or misguided rulers are long gone but their individuals suffer the consequences for debts that they had no component in, indeed most had not even been born. If a corporation can't repay its debts it goes bankrupt but a nation can't do that so these gigantic debts remained payable by the present population. A main campaign in the 90's exposed this scenario and, to their credit, several Western nations forgave the most heavily indebted countries their debts. Having said that, some un-payable debts remained on the books of a handful of creditor nations and though there was no prospect of them becoming repaid they remained a technical asset - which is where the vulture funds came in.
If someone owes you
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