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World Bank tries to fend off vulture funds- article
World Bank tries to fend off vulture funds Add to Clippings
REUTERS[ FRIDAY, JUNE 01, 2007 09:50:29 AM]
WASHINGTON: A senior World Bank official said on Thursday the institution would intensify its efforts to eliminate burdensome commercial debts of poor countries preyed on by so-called "vulture funds". Danny Leipziger, the World Bank's vice president for poverty reduction and economic management, said the bank would extend the life of its debt reduction facility, which helps finance buybacks of commercial debt of poor countries through grant handouts.
By extending the life of the facility by five years to July 2012, Leipziger said it would help curb increasing litigation against poor countries by the "vulture funds," which buy up discounted debt, often of developing countries, and then sue the government for more money than they paid.
"The spate of litigation by vulture funds against countries receiving debt relief will penalize some of the world's poorest countries unless we tackle this aspect of commercial debt more actively," Leipziger said in an interview.
"By extending the facility by five years gives us another window to try and remove some of the existing commercial debt for HIPC countries," he added.
Regards,
Priyanka
World Bank tries to fend off vulture funds Add to Clippings
REUTERS[ FRIDAY, JUNE 01, 2007 09:50:29 AM]
WASHINGTON: A senior World Bank official said on Thursday the institution would intensify its efforts to eliminate burdensome commercial debts of poor countries preyed on by so-called "vulture funds". Danny Leipziger, the World Bank's vice president for poverty reduction and economic management, said the bank would extend the life of its debt reduction facility, which helps finance buybacks of commercial debt of poor countries through grant handouts.
By extending the life of the facility by five years to July 2012, Leipziger said it would help curb increasing litigation against poor countries by the "vulture funds," which buy up discounted debt, often of developing countries, and then sue the government for more money than they paid.
"The spate of litigation by vulture funds against countries receiving debt relief will penalize some of the world's poorest countries unless we tackle this aspect of commercial debt more actively," Leipziger said in an interview.
"By extending the facility by five years gives us another window to try and remove some of the existing commercial debt for HIPC countries," he added.
Regards,
Priyanka