Matt and Polly’s blog website

Yesterday the vulture fund, Donegal International, that has been targeting Zambia for $55 million (we have talked about it before) was told it will only get $15.4 million. The fact Zambia has to pay anything to this company is still too much, but it is progress! The judge back in February found Donegal’s full claim to $55 million was not justifiable, but that it was entitled to something – and that award is now settled as being $15.4 million.

Apparently Donegal immediately claimed it had won the case and that Zambia should pay most of its legal costs, but the judge is restricting the proportion of the costs that Zambia has to pay, on the grounds that Donegal’s key witnesses were dishonest in their evidence before the court. You can read more at the Jubilee Debt Campaign website and BBC news website.

The UK and other donor countries funded Zambia’s legal fees, which enabled them to fight the case in the High Court - and get their losses reduced. But changes are needed to prevent such cases in future. Jubilee Debt Campaign and others are calling on the G8 to do what they can to prevent these companies targeting poor countries - through supporting the establishment of a fair, comprehensive framework for dealing with poor country debt, and funding legal assistance for countries targeted in this way.

Take action to tell the G8 to act against the vultures.