Only we have the power to stop vulture funds taking the world’s poorest countries to court
UK MP Bambos Charalambous urges the government to pass legislation preventing vulture funds from suing poor countries over debt, emphasizing that English law governs 90% of such debt and the UK can act at no cost to taxpayers. With over 50 developing nations in a severe debt crisis, private creditors are prioritized over public services like health and education. Recent legal threats against Ethiopia highlight the urgency, as current systems lack fair debt restructuring processes for sovereign nations. The proposed bill would cap creditor claims and block lawsuits during negotiations to ensure equitable treatment.
- ▪Over 50 of the world’s poorest countries are facing the worst debt crisis in history, with many spending more on debt interest than on education or healthcare.
- ▪90% of private debt contracts with developing nations are governed by English law, giving the UK unique leverage to reform debt enforcement practices.
- ▪In February 2026, bondholders announced plans to sue Ethiopia in UK courts, despite official creditors rejecting the restructuring deal as unfair.
- ▪The draft legislation introduced in November 2024 aims to cap what holdout creditors can claim and prevent legal action during debt restructuring talks.
- ▪International bodies including the African Union and the Vatican have called for legislative action to ensure fair treatment of distressed nations in debt negotiations.
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NewsUKUK PoliticsCommentOnly we have the power to stop vulture funds taking the world’s poorest countries to courtUniquely placed to intervene with legislation – at zero cost to the UK taxpayer – the clock is ticking for this government to stand by the poorest countries in the world, writes MP Bambos CharalambousTuesday 28 April 2026 12:19 BSTBookmarkCommentsGo to commentsBookmark popoverRemoved from bookmarksClose popover{"translations":{"comments":"Go to comments","share":"Share","copyLink":"Copy link","bookmark":"Bookmark","removeBookmark":"Remove bookmark"},"showComments":true,"showBookmark":true,"articleId":"b2966357","articleMeta":{"url":"https://www.independent.co.uk/news/uk/politics/uk-debt-pay-africa-aid-b2966357.html","title":"Only we have the power to stop vulture funds taking the poorest countries to court"},"popoverPlacementOverride":"bottom"}Related: Aid cuts condemned as 'moral catastrophe' by MPYour support helps us to tell the storyRead moreSupport NowFrom reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.Your support makes all the difference.Read more{}Increasing global inequality and the climate crisis. The Covid-19 pandemic and war in Ukraine. Now, fresh conflict in the Middle East. These headline news items are exacerbating a silent crisis that is paralysing developing nations – and the government has unique power to act.From the prime minister to the pope, everyone agrees that the Global South debt crisis requires urgent action – and this action becomes more urgent each day. Over 50 of the world’s poorest countries are facing the biggest debt crisis in history, which swallows up swathes of public funding. For example, 25 African countries are spending more on the interest they owe on foreign debts than they are on education: corporate profits prevailing over teaching the next generation. One of the predominant enablers of this is UK law, which currently allows profitable private lenders to sue debt-distressed nations in UK courts at the expense of hospitals staffed and schools built in those countries.if (document.cookie.split(';').some(cookie => cookie.trim() === '__DEBUG__=true')) { console.log('Ad logs: "mpu1", renderedAtParagraph: 3'); }if (document.cookie.split(';').some(cookie => cookie.trim() === '__DEBUG__=true')) { console.log('Ad logs: "mpu1", injectedAtParagraph: 3'); }The cancellation of country-to-country debt in the early 2000s brought about huge change for the developing nations affected. There was an increase from 45 per cent to 66 per cent of children completing primary school in the countries that benefited, as the money saved from making debt payments went into public services. This debt relief was a lifeline for…
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