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Article

26 Nov 2009

Author:
BBC News

Liberia ordered to pay 'vulture funds' over 1978 debt

A British court has ordered Liberia to pay two Caribbean-registered investment funds more than $20m (£12m) for a debt that dates back to 1978. The sum awarded to the firms - described as "vulture funds" by critics - is equivalent to about 5% of the Liberian government's budget this year. Liberia says it has no money to pay the debt back and has accused the firms of profiting from poverty…Very little is known about the funds - Hamsah Investments and Wall Capital…BBC economics correspondent Andrew Walker says vulture funds are controversial - especially when they target nations already receiving debt relief on what they owe to rich countries… The solicitor representing Hamsah has not yet responded to requests for comments on the case.