Wednesday, May 23, 2007

Paris Club Pledges to Avoid Selling Debtor Claims to Distressed Debt Funds

(Bloomberg) -- Paris Club members, a group of
creditor nations including France, Canada, Germany and Italy,
will avoid selling claims on debt owed by poor countries to so-
called vulture investors who sue to recover larger payouts.

``These actions freeride on the debt cancellation granted by
other creditors and thus divert resources from poverty reduction
expenditures in the debtor country,'' the organization said in a
statement yesterday. The informal grou, formed in 1956, meets
monthly with debtor nations on the restructuring of obligations.


Read more at Bloomberg Emerging Markets News

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