GLOBAL WEEK OF ACTION AGAINST DEBT AND THE IFIs 8-15 October 2014

09 October 2014

Vulture fund debt restructuring

Take action now!

This week is the annual Global Week of Action against the Debt and International Financial Institutions (IFI)

8-15 October 2014

Argentina has fallen prey to a bunch of hedge funds known as 'vulture funds'. Taking advantage of the precarious financial situations of some States, these vulture funds buy debts at a discounted price on a secondary market and then sue the debtors for the initial amount to which they add interests, penalties, and legal expenses.

Vulture funds, which are usually based in tax havens, can thus make huge benefits to the detriment of populations, as in the case of NML and Aurelius, have just won a dramatic victory in a US court. 

After the 2001 crisis, in 2005 and 2010, 93% of private creditors agreed to reduce Argentina's trade debt by 70% after the country had suspended payment in order to be able to meet the basic needs of its population. NML and Aurelius Capital refused to take part in these negotiations and sued Argentina in New York courts where they were granted the right to demand $1.33 billion, i.e. an added value of 1,600%.

Argentina is not the only country affected by this kind of legal swindle. It is critical that laws against vulture funds are passed as soon as possible. The Democratic Republic of the Congo has also been sentenced by US courts to pay vulture funds. Europe is concerned too. Greece has already been attacked.

Vulture funds are only the tip of the iceberg. What is hidden below, the entire debt system, presents equally perilous threats. This year we commemorate the 70th anniversary of IFIs, the IMF and the World Bank, institutions who continue to demand repayment of odious, illegal and illegitimate debts, impose austerity measures, violate human rights, and create poverty. Vulture funds are not the only birds of prey around! 

To fight back, we call upon all to mobilize during the global week of action against the debt and the IFIs. The 15th of October is the 27th anniversary of the assassination of Thomas Sankara, the Burkinabé leader who paid with his life for his refusal to repay sovereign debts and to accept the policies enforced by the IFIs.

We call upon all international associations and movements to join in this GLOBAL WEEK OF ACTION AGAINST THE DEBT AND THE IFIs, 8 to 15 October, to end the dictatorship of the debt, the perverse mechanisms of micro-credit (11 October), and the free-trade agreements such as CETA or TTIP (11 October). We demand

⁃                laws against vulture funds [#stop vulture funds]

⁃                citizens' audits of the debt to identify and consequently cancel all odious, illegal and illegitimate debts

⁃                acknowledgement of countries' sovereign right to take unilateral measures to default on their debts so as to meet their commitments in terms of environmental and human rights

⁃                the setting up of an international tribunal of the debt that ensures that priority is given to human rights above the rights of creditors

⁃                a new global and regional financial architecture that gives priority to people and the planet before creditors' profits and corporate power

⁃                a fair and progressive tax system.

 

Stand up against vulture fund and illegitimate debt!

 

Organisations who have signed up to this statement: 

AFRODAD
ATTAC/CADTM Morocco 
ATTAC Spain 
CAD Mali
CADTM Africa
CADTM International
CEO
CNCD-11.11.11 (from Belgium) 
Debt and Development Coalition Ireland (DDCI)
Environmental Association Za Zemiata - Friends of the Earth Bulgaria 
erlassjahr.de - Entwicklung braucht Entschuldung (Jubilee Germany)
Eurodad
Initiative for Democratic Socialism (Slovenia)
Jubilee Debt Campaign (UK) 
No Debt No Euro (Greece) 
PACD
Réseau international Justice pour Sankara Justice pour l’Afrique
TNI

 

Calender of Events around the world for Debt Week 

  • Tuesday, October 8th: (UK) Book launch - 'ARGENTINA SINCE THE 2001 CRISIS: RECOVERING THE PAST, RECLAIMING THE FUTURE', 5.30pm, UCL Institute of the Americas, https://www.facebook.com/events/1483964371847987/

  • Wednesday, October 9th: (Uruguay): CADTM-AYNA activities: Séminars in Montevideo (Uruguay): América Latina y el Caribe. Procesos de Integración Regional / Alternativas / Modelos de “desarrollo”/ recursos naturales y energéticos/ ¿Hacia dónde VAMOS ? (http://cadtm.org/America-Latina-y-e...)

  • Wednesday, October 9th: CADTM Africa activitiesPopular talk on debt organised by CAD Mali to inform the population about the impact of the World Bank « Doing Business » et « Benchmarking Business of Agriculture » projects

  • Friday, October 10th: (various locations) as the Bank leaders converge in Washington D.C. for the World Bank’s annual meeting, creative mobilizations will be held simultaneously in 10 cities around the world, under the slogan "Our Land Our Business". Join #WorldvsBank mobilizations

  • Friday, 10th October: (Uruguay) CADTM- AYNA activities: Deuda pùblica global, derecho internacional y los derechos humanos en el siglo XXI (http://cadtm.org/Deuda-publica-glob...)
  • Saturday, October 11th : European day action against TTIP All around Europe: Decentralized actions day against TTIP, CETA (free-trade agreement between Canada and the European Union) and TISA (The Trade in Service Agreement between 50 countries, 28 of which are part of the European Union) http://stoptafta.wordpress.com/
  • Saturday, October 11th: (Belgium): Alliance D19-20 organizes a meeting and some concerts on October 11th from 14.30 pm to 21pm, in Brussels. http://www.d19-20.be/fr
  • Saturday, October 11th, press conference and symbolic action by the Belgian debt audit platform in Namur
  • Tuesday, October 14th: (UK) Film night “TTIP- Capitalism on steroids”, 6.30pm, Rich Mix, London E1, https://www.facebook.com/events/701502649944353/
  • Thursday, October 16th: (UK), Thomas Sakara commemoration, 9pm, School of Oriental and African Studies, https://www.facebook.com/events/458329230976388 
  • Saturday, October 18th: (Ireland -- DDCI), 'Borrowers Can Be Choosers -- Forging Debt Resistant Communities' A public, think-in for vibrant anti-debt campaigning and activism. See here for more info. 
  • Sunday 19th October: Attac Morocco Casablanca activities: projection of the movie “Confessions of an Economic Hit Man” by Stelios Kouloglou  (Arab version) and debate