A vulture fund has made €100 million profit from speculating on Greek debt, as Greece stands on the brink. Tell the Chancellor, George Osborne, to stop vultures profiteering from Europe’s crisis.
Vulture fund Dart Management, based in the Cayman Islands, has received a €400 million payment from Greece at the height of the country’s crisis, according to the New York Times.
Most of Greece’s creditors took a 50% ‘haircut’ on their debts in March, as part of a deal for Greece to receive a massive IMF and EU bailout with austerity conditions attached. But the vulture funds – which together control more than €6 billion of debt – refused to join in, saying they would hold out for the full amount.
Extraordinarily, the vulture funds can demand their pound of flesh because the debts are covered by English law. While under Greek law all creditors have to join in with the ‘haircut’, a fraction of the debt is written in foreign law, much of it English, meaning the Greek government cannot enforce the ‘haircut’.