MP supports debt scheme

Feb 25 2010 by Marjorie Kerr, West Lothian Courier

A WEST Lothian MP has signed up to the campaign to curb so-called Vulture Funds.

Vulture Funds are secretive firms that buy up the defaulted debts of the world’s poorest countries, often at low prices.

They then take countries to court to aggressively recoup the debts at full value for immediate repayment, often in UK and US courts.

This action allows a small number of investors to take money which poor countries urgently need to spend on health and education for their citizens.

Charity Jubilee Debt Campaign has been working to outlaw this practice for over a yea gaining the support of politicians of all parties included Michael Connarty.

The local MP said: “The Bill which will is due to come to the House of Commons on February 26 would represent a major step forward in tackling these funds.

“This proposal would heavily restrict the actions of creditors that do not participate in debt relief, dealing with the so-called Vulture Funds.

“For too long, some companies have been allowed to get away with exploiting the debt relief received by developing countries for their own profit.

“In so doing they are taking vital resources away from those countries and people that need it most.

“I aim to support this Bill when it comes before the House of Commons and put a stop to this practice.”

MP Andrew Gwynne MP has given Parliament the chance to do something about the problem with the green light to introduce his Bill into Parliament.

He has introduced a Private Member’s Bill to prohibit vulture fund activity against the poorest countries in the world.

The Bill will receive its Second Reading on Friday, February 26, and has support from MPs from across the whole of the political spectrum in the UK.

Michael Connarty MP will join Mr Gwynne and other MPs to give his support to the Bill in Parliament on this day and help the fight against global poverty.

Jubilee Debt Campaign campaigned to highlight a case last November in which vulture funds won £20 million against Liberia, one of the poorest countries in the world, in a UK court.