Government to block 'vulture funds'

Eddie Teare said Tynwald has moved quickly to ensure vulture funds can not be established in the Isle of Man.

The Act seeks to prevent businesses known as ‘vulture funds’ from buying up the debts of Heavily Indebted Poor Countries (HIPCs) for a fraction of their original price and then using the UK courts to sue for the full value of the debt, plus interest. 

The legislation seeks to outlaw a practice that undermines international debt relief efforts.

Minister Teare said although there is currently no evidence of vulture fund activity on the Island it is important the legislation is introduced immediately in an effort to keep it out:

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