Debt vultures are really the scum at the bottom of the pond. These are guys who buy up the debts of the world's poorest countries on the secondary market. You can go buy debts of a country like Peru, for example, at a real discount. Why? Because people think that the debts won't be repaid.
The Central Bank should have a permanent window for discounting high quality securities where banks could go and discount these. It gives peace of mind to the banks. In the absence of this facility, what banks tend to do is to keep a liquidity cushion for emergency requirements. This is a very expensive way of managing liquidity.
My favorite part was when my grandfather and I would make a special trip to Firpo's Bakery for red and green Christmas cookies and fruitcake studded with the sweetest cherries I've ever tasted. Usually Firpo's was too expensive for our slim budget, but Christmas mornings they gave a discount to any children who came in.