MP backs move to ban 'vulture' funds

EDINBURGH North & Leith Labour MP Mark Lazarowicz has backed a bid to clip the wings of "vulture" funds which prey on developing countries.

The funds buy up third world countries' debts at a discount and then sue them in courts for repayment in full at exorbitant rates of interest.

Mr Lazarowicz has given his support to a private member's bill introduced by fellow Labour backbencher Andrew Gwynne to tackle the practice.

The campaign against vulture funds has brought together politicians, churches and campaign groups such as the Jubilee Debt Campaign. The UK Government has welcomed Mr Gwynne's bill.

The Debt Relief (Developing Countries) Bill would prevent hedge funds suing countries in UK courts for repayment at rates of interest greater than that agreed by the World Bank and IMF under an international initiative on debt relief.

Mr Lazarowicz said: "These funds seek to make profits out of poverty and in doing so prevent scarce resources being spent where they are needed most – on health and education.

"I am pleased to see the Government is keen to get this on the statute book and stop UK courts being used by vulture funds to prey on some of the world's poorest people."