Vulture Fund business!

19 February 2007 |

"Vulture Fund” Company Wins $20 Million Payment from Zambia on $4 Million Debt




Video courtesy and copyright BBC

“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 that has won the right to collect $20 million from the government of Zambia after buying its debt for $4 million. In his recent State of the Union address, President Bush declared the United States was taking on the challenges of global hunger, poverty and disease, and urged support for debt relief, which he called the best hope for eliminating poverty.

But what exactly are wealthy nations doing to reduce the debt of impoverished countries?

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.



THANKS GREG!

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