Update - Vulture Funds
Monday 05 March 2012
In response to a query from a member of the public the following update on Vulture Funds has been released:
On 6th June 2011, the Policy Council agreed that a report should be prepared recommending the enactment of appropriate legislation designed to limit the capacity of "vulture funds" to enforce payment of debts through Courts in the Bailiwick. A consultation was undertaken and closed in September.
This decision reflects the strong commitment to work with other jurisdictions to reduce external debt burdens of the most heavily indebted poor countries.
On the 18November 2011 the Policy Council issued the following statement to clarify the position should a vulture fund be established in Guernsey prior to the proposed legislation:
"It is anticipated that the legislation will follow the UK example [the Debt Relief (Developing Countries) Act] , which will ensure that if a fund has the right to recover a qualifying debt incurred prior to the commencement of the law there will be appropriate restrictions on the right to recover the amount owed after the law is enacted."
The Council is working to bring these proposals before the States at the earliest possible juncture, this will be following the General Election in April 2012.
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