Peter Power (Limerick East, Fianna Fail)

I agree fully with Deputy Higgins on this issue. Vulture debt is an odious practice and I would welcome any initiative to make this internationally illegal. Debt vulture hedge funds or other funds involved in buying debt on the verge or eve of it being forgiven as part of international debt alleviation is a reprehensible practice. In essence it represents funds in the major financial markets preying on countries just before they experience debt relief and trying to extract enormous profits from them.

The issue of what is known as illegitimate debt has arisen more frequently in discussions on international debt relief. This is why initiatives such as the UNCTAD initiative to address responsible lending and, in particular, to closely involve the World Bank, IMF, the Paris Club and civil society so as to properly define proper, legitimate - and almost moral - debt and lending to these countries are so important. We cannot go back to the situation we had where there was irresponsible borrowing and lending by states in which we are involved. We want these states to build up their inherent country systems to ensure they do not go down the road of irresponsible lending and borrowing again.

See this speech in context