Vulture Funds

Mike Penning
To ask the Chancellor of the Exchequer whether he had discussions with Ministers from other EU states to consider co-ordinated action to outlaw the activities of vulture funds; and if he will make a statement.

Kitty Ussher
The UK is determined to stop so-called “vulture” funds profiting from poor countries. The UK has been working through the G7 and the Paris Club to tackle this problem. In addition, Ministers have a range of discussions with EU and other international partners on international development and related issues.

We are also focusing on creating a level playing field in which heavily indebted poor countries heavily indebted poor countries countries have the resources and expertise to defend themselves. In this context, we are working with the African Development Bank to develop proposals for a legal assistance facility to ensure that countries have access to high-quality legal advice to help them fight law suits.

Mike Penning
To ask the Chancellor of the Exchequer whether the activities of vulture funds were discussed at the recent annual meetings of the International Monetary Fund and World Bank; and if he will make a statement.

Kitty Ussher
The Chancellor raised this issue with G7 Finance Ministers at the Annual Meetings. In their statement, Finance Ministers reiterated their concern about the problem of aggressive litigation against HIP countries. They welcomed the steps already  taken by the Paris Club to address this problem and urged all sovereign creditors not to sell on claims on HIPCs. G7 Finance Ministers are examining additional steps that might be taken to address this problem.

Mike Penning
To ask the Chancellor of the Exchequer what the Government's policy is on calls by the Finance Ministers of heavily indebted poor countries for (a) codes of conduct to be agreed for creditors not to sell sovereign debts on secondary markets and (b) international lawyers not to represent litigants who sue poor countries in pursuit of these debts; and if he will make a statement.

Kitty Ussher
With respect to the sale of debts, Paris Club creditors have publicly stated their commitment not to sell their claims on HIPCs to creditors that might not be willing to implement the HIPC initiative. In their October statement, G7 Finance Ministers welcomed this step and urged all sovereign creditors not to sell claims on HIPCs. We will take forward discussions on this issue in international forums and with private-sector creditors.

So far as legal representation is concerned, we believe the right approach is to focus on creating a level playing field in which HIP countries have the resources and expertise to defend themselves. In this context, we are working with the African Development Bank to develop proposals for a legal assistance facility to ensure that countries have access to high quality legal advice to help them fight law suits.