Vultures Swoop on Liberia in London Court
Liberia – one of the poorest countries in the world – was taken to court today by Hamsah Investments and Wall Capital Ltd. These vulture funds had purchased the right to reclaim these debts and pursued Liberia for over $20 million. It's completely outrageous - but it's still perfectly legal.
Hamsah Investments, registered in the British Virgin Islands, previously won a similar case against Nicaragua – winning $11.6 million on a debt bought for $2.5 million.
Wednesday's Channel 4 News report:
Sally Keeble MP interview
Jubilee Debt Campaign is campaigning to End the Vulture Culture, and is calling on the MPs who came top in today's Private Members’ Ballot to introduce legislation which would effectively prevent such cases being heard in British courts.
The government launched a consultation on the issue over the Summer, but has so far not introduced legislation. A bill is currently making its way through the US Senate.
Earlier in the year Sally Keeble MP introduced a Ten-Minute Rule Bill which would have curbed the extortionate profits which vultures depend on to be successful.
Nick Dearden, Director of Jubilee Debt Campaign said: "This case is absolute proof that you can’t tackle vultures by voluntary means."
"Currently these companies don’t have to tell us anything about themselves because they’re registered in tax havens – they can just turn up in London and sue one of the poorest countries in the world. We urgently need legislation to prevent these appalling companies profiting from poverty.”
Liberia has been one of the countries most heavily targeted by vulture funds, with $357 million being awarded against the country – 49% of its GDP. Earlier in the year, Liberia engaged in a World Bank scheme to buy back a large proportion of its commercial debt at discounted rates.
This case proves the difficulty of outflanking the vultures through voluntary schemes. The World Bank and IMF’s report on outstanding commercial creditor claims against Heavily Indebted Poor Countries, released in September, didn’t even detect this case.
