Zambia to pay Vulture Fund $15.4m
The United Kingdom Royal Court of Justice in London yesterday ruled that Zambia should pay US$15.4 million to Donegal International, the Vulture Fund that sued Zambia for US$55 million debt.
And commenting on the judgement in an interview in Lusaka last night, Attorney General Mumba Malila described the outcome as good news for Zambia.
This is according to the Jubilee United States of America website which also stated that court would determine the share of legal costs later.
It also described the judgement as a small victory for Zambia.
The anti- Vulture Fund campaign organisation further said that the injustice of the result could not be clearer.
And Mr Malila said the outcome of the case was a plus for Zambia and commended the lawyers for having fought hard to bring down the amount from US$55 million to US$15.4 million.
He said the judgement of such an amount was a plus for Zambia unlike the earlier claim.
British Virgin Islands-based International paid US$3 million for a debt Zambia owed Romania but later sued for US$55 million repayment.
The debt originally had a face value of US$15 million, but Donegal International claimed that unpaid interests and other charges raised the amount to US$55 million.
Zambia had paid back US$ 2 million, but Donegal International successfully sued the Zambian government on February 15, 2007 in the UK court.
In 1979, the Romanian government lent Zambia money to buy Romanian tractors.
Zambia was unable to keep up the payments and in 1999, Romania and Zambia negotiated to liquidate the debt for $3m.