Vulture Funds Cashing in on Greek Debt

Wherever chaos appears, vultures follow; an unavoidable consequence which Greece has to deal with. Greeks rush to withdraw savings, while some “clever” and rich companies around the world make deals with Greeks.

Kenneth Dart is an American tax exile who left the USA in 1994 and lives in the Cayman Islands. This week, he managed to get an estimated €400m check from Greece. But how did he do so, you ask? He refused to take part in the restructuring of government debt that saved Greece from default in the spring, as British Independent reports.

Dart is a successful real estate agent in the Cayman Islands but his hedge fund, Dart Management, purchased part of the Greek debt. This is a common policy of international-based vulture funds, who purchase a country’s debt and afterwards, threaten to sue it if the interest payments are not made.

Dart Management and another vulture fund, called Elliott Associates, “are still suing Argentina in the US courts to demand full payment of bonds on which that government defaulted in 2002.” It’s the same story with other countries, too – Brazil, Russia, Turkey and Ecuador are only a few.

Dart wants to take back the total amount of his bond, or at least a considerable amount by suing Greece, should the situation arise. At the same time, Greeks having bought some part of the country’s bonds, have been forced by the state to receive only 70% of their value (sometime in the future).




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