Holy See calls for end to "Vulture Funds "

(June 09,2010) The Holy See is urging the international community to end speculation with vulture funds, by which heavily indebted developing countries are being exploited. Archbishop Silvano Tomasi, the Holy See's permanent observer at the U.N. offices in Geneva, Switzerland, made this appeal at a June 2 session of the Human Rights Council. In a subsequent interview with Vatican Radio, he explained more about these funds or investments that take the name of this bird that eats away the bones of the carrion of other animals, or attacks when an animal is about to die. This name was chosen, the prelate said, for these speculative funds that acquire at a low price the debt of developing countries to public or private creditors, but especially to the State. The company that buys the debt at a very reduced price," he said, asks the debtor country, in a completely legal way, to reimburse the initial credit, increasing the interest, so that the initial cost greatly increases.
Archbishop Tomasi said "When the country cannot pay, especially developing countries in Africa, these 'vulture funds' try to get the money coming from public financial backers, or from any primary resource of the country, such as oil or other raw materials. In this context, he said, the Holy See appeals for the elimination of this type of speculation. The prelate said "We uphold the principle that debts must be paid, but at the same time, the exercise of fundamental human rights must be guaranteed," he added.