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Vulture Funds

Volume 460: debated on Wednesday 9 May 2007

12. To ask the Secretary of State for International Development what discussions he has had with (a) the World Bank and (b) other multilateral institutions on the activities of vulture funds in developing countries. (136216)

The actions of vulture funds are deplorable. They cannot be allowed to continue to profit from poor countries. The UK is working with the World Bank to ensure that countries can buy back their commercial debts at a considerable discount through the Debt Reduction Facility. We are encouraging the World Bank and IMF to strengthen their support for debt management capacity building in developing countries. The UK is also supporting the African Development Bank’s proposal to set up a legal assistance facility to help countries facing lawsuits access legal advice. In addition, we will seek to develop a voluntary code of conduct for commercial creditors.