As Argentine President Cristina Fernandez readies for her annual trip to New York to speak at the United Nations General Assembly, US interim ambassador in Buenos Aires Kevin Sullivan ratified that Washington will not back the UN sovereign debt resolution sparked by Argentina’s legal battle with its holdout creditors.
“The US does not support the debate at the United Nations because we do not think it is the right place to find an efficient solution,” the official said in an interview with Clarin newspaper.
“It would be much better to work with existing market mechanisms to issue sovereign debt rather than creating a UN convention or going to The Hague,” he added.
Last week, the UN voted overwhelmingly in favor of a legal framework to regulate the foreign sovereign debt restructuring, by 124 votes in favor. The US and its major allies voted against it.
The US official said that “it is important for Argentina to exit default as soon as possible, for it to return to the path of sustainable economic growth and attract the investment it needs.”