Thursday, February 15, 2007

Vulture Funds

Money! Guess that is the only truth for most of the human race. On one hand, we squander all our savings on petty things like flowers and chocolates for our loved ones while on the other, the only thought running through our mind is how to get a bigger piece of the pie.
Till I read this article on BBC, I did not know that such things as Vulture Funds existed. Vulture Fund companies buy the debts of countries that are in bankruptcy situations. These companies buy the securities for a factor of what they are worth and then try to get back the amount by suing the debtor for an enormous amount.
Consider a poor country like Zambia. They took a loan to buy tractors from the Romanian Government and now the Vulture Fund company is suing them for $42m. According to the article, it was the Romanian government that had given Zambia the loan and then they sold the securities to the Vulture Fund company for less than $4m.
In this era of decadence, it is no surprise that Vulture Funds seem to thrive by preying on the weak and the needy. Allegations are rampant that it is the politicians themselves of the affected countries who allow this happen. Talk about 31 pieces of silver. In Zambia, there are allegations that the deal was made possible by bribing the former President of Zambia. Documents show a huge contribution to the former President's 'favorite charity'.
If only the world governments would take a strong stance against such immoral companies. As far as I am concerned, this is more much more dangerous and terrifying than some country developing nuclear weapons.

2 comments:

One Who Nets The Dot said...

@D:
So are you suggesting that they dont repay their debt?

D for Dawn said...

@one who nets the dot - No, that is not what I am suggesting. The debt has to be repaid, at some point of the time of other. But how reasonable/just is to ask for $42m if they were to return only $3m. That is unreasonable. That too from a poor country.
Blood Sucking Vampires!

Powered By Blogger