Jersey plans to crack down on Vulture Funds
Jersey have finally announced that they will bring in legislation which will limit the ability of vulture funds from profiteering from some impoverished country debts.
The new legislation will limit debt claims against the 40 countries who benefitted from debt relief under the Highly Indebted Poor Countries in 1998, but only applies to debt created before 2004.
US vulture fund FG Hemisphere is currently suing the Democratic Republic of Congo for $100 million in the Jersey courts on a debt it bought for just $3 million. The final appeal in the case is expected to be heard in the next few months. The debt originally comes from loans to Congolese dictator General Mobutu during the Cold War. If Jersey implements the new legislation soon, they will be able to stop this case.
This is an important step in stopping vulture funds, and couldn't have happened without all of the campaigning that you all did here in Scotland.