Foreign Debt Expert Warns Against "Vulture Funds"

The UN independent expert on foreign debt and human rights Cephas Lumina has been speaking against so-called "vulture funds" which purchase the outstanding debts of heavily Indebted countries. In a statement, Mr.Lumina explains that "vulture funds" purchase these debts on the secondary market for less than the face value of the actual debt obligation. They then seek repayment at full face value, plus interest, penalties and legal costs, or impound assets from the companies or countries in an attempt to force payment. Lumina calls on countries to follow the example of the United Kingdom and Jersey in the Channel Islands which have adopted legislation preventing "vulture funds" from pursuing excessive claims before their courts.