Vulture fund's $100m DR Congo claim blocked
By Meirion Jones
Bid to block $100m 'vulture' debt
The Privy Council has ruled that a "vulture fund" cannot collect $100m from the Democratic Republic of Congo.
The award was against Congo's state-owned mining company Gecamines who successfully appealed to the Privy Council in London.
FG Hemisphere deny any wrongdoing.
Nick Dearden, Director of the Jubilee Debt Campaign, said: "We welcome the fact that these funds will not flow into the coffers of a secretive vulture fund which tries to unfairly profit from the past debt distress of impoverished countries.
Vulture funds, also known as "distressed debt" investors, buy up the debt of poor nations cheaply when it is about to be written off and then sue countries such as Zambia or Liberia or DRC for the full value of the debt plus interest which can be ten or 100 times what they paid for it.
They pursue any companies which do business with their target country in courts around the world and try to force them to pay money to the fund instead of the country.
Critics say this holds poor countries to ransom and prevents them trading their way out of poverty rather than relying on aid. Until 2010 they often sued in the UK but Britain effectively made vulture funds illegal that year after the Liberian President Ellen Sirleaf Johnson (Show me more...)