In Depth

In the early 1980s, rising interest rates and huge loans saddled poorer countries with large amounts of debt. Many of these loans were made to corrupt dictators and assumed by the democratic governments that succeeded them. Just paying the interest on this debt severely restricted the ability of governments to pay for critical social and economic programs for its people.

Since then, many donor countries have agreed to forgive the loans they made to poorer countries. But these gains are threatened by the emergence of Vulture Funds, a dimension of hedge fund operations which prey upon indebted developing countries.

Investors in Vulture Funds buy up sovereign debt from developing countries just as those countries qualify for debt relief. The investors then sue impoverished countries for far more than they paid for the debt.

You can help. Tell Congress to clip the wings of these Vulture Funds and allow poor countries to pursue negotiated, sustainable paths out of debt.