Tuesday, September 9, 2014
UN assembly approves creation of debt restructuring framework
The United Nations has voted overwhelmingly in favour of a legal framework that would help regulate restructuring of foreign sovereign debt, a project that was suggested by the Argentine government and presented before the assembly by the Group of 77.
124 countries voted in favour of the proposal, with just 11 registering their opposition and 41 abstentions. Among those nations who did not support the framework were the United States, the United Kingdom, Israel, Germany, Czech Republic, Australia, Japan and Finland.
The initiative had been proposed by the G77 organisation of UN member countries, as Argentina continues tied in a legal dispute with holdout investors that forced the nation into a selective default at the end of July this year.
"It is a top priority to create a legal framework, with the aim of increasing efficiency, stability and predictability in the international financial system and the achievement of an equitable, inclusive growth," stated G77 president Sacha Llorenti Soliz in a defence of Argentina's posture in the 'vulture funds' dispute.
Foreign minister Héctor Timerman also addressed the assembly, pleading for protection from those he dubbed "sinister gentlemen of opulence."
"We must prevent more people paying with hunger and misery for the speculation of these sinister gentlemen of opulence: the vulture funds," the minister expressed.
"My country's situation reflects the need for a framework to protect us from a judge [Thomas Griesa] who found in favour of 1 percent of bondholders."
124 countries voted in favour of the proposal, with just 11 registering their opposition and 41 abstentions. Among those nations who did not support the framework were the United States, the United Kingdom, Israel, Germany, Czech Republic, Australia, Japan and Finland.
The initiative had been proposed by the G77 organisation of UN member countries, as Argentina continues tied in a legal dispute with holdout investors that forced the nation into a selective default at the end of July this year.
"It is a top priority to create a legal framework, with the aim of increasing efficiency, stability and predictability in the international financial system and the achievement of an equitable, inclusive growth," stated G77 president Sacha Llorenti Soliz in a defence of Argentina's posture in the 'vulture funds' dispute.
Foreign minister Héctor Timerman also addressed the assembly, pleading for protection from those he dubbed "sinister gentlemen of opulence."
"We must prevent more people paying with hunger and misery for the speculation of these sinister gentlemen of opulence: the vulture funds," the minister expressed.
"My country's situation reflects the need for a framework to protect us from a judge [Thomas Griesa] who found in favour of 1 percent of bondholders."
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