UK takes on the vultures

http://www.touchstoneblog.org.uk/2009/07/government-does-the-right-thing-for-poor-nations/

...well...they are having a consultation about vulture funds that buy up third world debt at discounted rates and find a court that will enforce the payment of the full amount.

It's basically the equivelant of you "buying" the debt of £100 that someone owes to your mate, for say £10, and then finding a court/suitable number of heavies to enforce the repayment of the full £100.

How many of you were aware of this practice? Immoral?

Reply 1

Chrrye

Dont know how they would get the money tbh.

If a country wont pay another government its not going to pay up because a random judge somewhere says "You must pay this company"

Dont get my wrong, if this happens it is very bad, just seems very unlikely/impossible.
Article does not mention any examples..

Reply 2

Paxdax

Seems unrealistic. If it was that easy to get the money, then why didn't the financial institution which lent the money sue them in the first place? If the indebted couldn't pay the first-hand lender, then how could they pay the 'vultures'?