Stop Debt Vultures!

Support Caritas Australia
and help us free developing
countries, like the DRC,
from the burden of debt.

Caritas Australia has joined the Stop Debt Vultures campaign which aims to bring an end to the exploitation of developing countries by unethical ‘vulture’ financiers.

What are vulture funds?

Vulture funds are private investment firms that prey on the world’s poorest countries. These commercial bankers circle developing countries on the lookout for debts that the country is struggling to repay. Then they swoop down, purchase the debt on the secondary market for a cheap price, and sue the poor country to recover the full value of the debt – plus interest, penalties and legal fees.

How do vulture funds operate?

The Human Rights Law Centre says vulture funds are operated by private investment firms which purchase foreign debt of developing countries at a heavily discounted price and then seek to recover the full amount of debt with significant interest and spurious fees through legal proceedings based in countries such as the US, UK and Australia.

A ruling in the NSW Supreme Court in November last year found in favour of a vulture fund operator, ordering the Democratic Republic of Congo (DRC) to pay well in excess of $30million, in addition to exorbitant interest and legal fees. This is more than twice the amount of humanitarian assistance that Australia has provided the DRC since 2006.

Why does Caritas Australia support this campaign?

Caritas Australia works with communities to ensure their human dignity endures despite the poverty, hunger, oppression and injustice they face. The work of Debt Vultures undermines human value, dignity and worth.

We are also committed to advocacy and engagement with government and civil society to ensure marginalised people receive economic justice.

What can be done?

The United Kingdom has introduced legislation to stop Debt Vultures swopping on a country that have been accepted into a debt relief program.

Australia should do the same. You can help:

Send a message to The Hon Robert McClelland MP AG and ask him to Stop Debt Vultures from using Australian courts to profiteer off the poor.

For more information, go to stopdebtvultures.org.au