JDC Updates

Economic policy conditions attached to World Bank loans

From next week, the UK government has a new opportunity to push for an end to economic policy conditions attached to World Bank aid, loans and debt relief. Since March 2005 the UK has said it opposes these conditions, but they are still routinely being imposed. Please join us in telling the UK to put its money where its mouth is:

http://www.jubileedebtcampaign.org.uk/strings

Conditions attached to debt relief force poor countries to cut spending or privatise services, and delay much-needed cancellation. Last year, your Cut the Strings! campaigning persuaded UK Development Secretary Hilary Benn to protest over these conditions by withholding £50 million from the World Bank - and the Bank took notice. However, after a further report, the UK did release the money. We think that not enough has changed for poor people, and more pressure is needed.

From 5th March, the government has another opportunity to show it is serious about these unfair conditions, when the Bank starts asking donor countries for its next three years of funding. Please join us in urging the UK government to use this opportunity to push for an end to conditions that are devastating lives.

http://www.jubileedebtcampaign.org.uk/strings

Thank you!

Jubilee Debt Campaign

Vulture Funds

The vultures are circling!

Right now, Donegal International, a private "vulture" fund, is taking advantage of debt relief to extort a huge payment from Zambia, one of the world's poorest countries.

In 1999, Donegal bought up a debt owed by Zambia at a knock-down price of about $3.3 million, while Zambia was trying to renegotiate its unpayable debts. Now, Donegal has sued Zambia for the full amount, plus interest and costs - a staggering $55 million!

In a judgement yesterday, a High Court judge in London acknowledged that Donegal's basic claim against Zambia was legal. However, because the behaviour and circumstances of the claim were so dubious, he reduced the amount to be paid to an estimated $15 million - still appallingly rich pickings from a country where people live on less than $1 a day.

Jubilee Debt Campaign, along with Oxfam, is calling on Michael Sheehan, the man behind Donegal, to do the right thing, and not make Zambia pay up.

Take action: Join the call for Donegal not to accept any money:

http://www.jubileedebtcampaign.org.uk/vultures

It's completely legal!

"Vulture funds" are companies that seeks to make profit by buying up 'bad' debt at a cheap price, then trying to recover the full amount, often by suing through the courts. It's completely legal, but profoundly unjust.

$15 million would be nearly half the amount that Zambia is due to save from debt relief this year. But with a life expectancy of 33 and a third of its children receiving no schooling, it desperately needs all its money to invest in health workers, teachers and infrastructure. Donegal must not take this money - and you can help.

Write to Donegal to tell them what you think! And encourage Chancellor Gordon Brown to change the rules to prevent this happening again:

http://www.jubileedebtcampaign.org.uk/vultures

Thanks and best wishes,

Jubilee Debt Campaign

ps. You may have seen Newsnight's special report into vulture funds and the Zambia case on Wednesday evening. If not, you can watch the report online at:

http://news.bbc.co.uk/2/hi/programmes/newsnight/6362783.stm