§ Ross CranstonTo ask the Chancellor of the Exchequer what recent assessment he has made of the operation of vulture funds; and if he will make a statement. [76278]
§ John HealeyFollowing requests from UK and other G7 partners, the IMF and the World Bank have comprehensively addressed the issue of creditor litigation in their report on the status of implementation of the Heavily Indebted Poor Countries Initiative. The report looks at vulture funds and other debt brokers purchasing debt in the secondary market and seeking recovery through litigation.
10 HIPCs responded that they were facing litigation on credits held by commercial creditors and the governments of Iraq and Burundi.
Some countries are burdened with several cases-for example Uganda is facing 6 cases of litigation and Sierra Leone five cases. A copy of the full Report is available on the IMF website at: http://www.worldbank.org/hipc/ progress-to-date/Final—Full—Revised—Status—of—Implementation.pdf
At the Annual meeting the UK continued to press for the establishment of technical assistance to help countries being sued by creditors.