MercoPress. South Atlantic News Agency

UN Assembly overwhelmingly supports Argentina in the sovereign debt debate

“It is a fundamental step against attacks of the vulture funds, which Argentina is suffering right now and which other countries could suffer” said Kicillof

The United Nations General Assembly has approved a resolution put forward by Argentina regarding sovereign debt restructuring, which seeks to limit the movement of speculative funds in influencing such actions.

 A total of 136 nations voted in favour of the resolution, with 41 abstentions and six votes against: The United States, United Kingdom, Canada, Germany, Israel and Japan.

Before the vote Argentina Economy minister Axel Kicillof addressed the Assembly, which he urged to pass the resolution in light of Argentina's battle against holdout investors following the 2001 default and subsequent restructuring efforts.

“It is a fundamental step against the attacks of the vulture funds, which Argentina is suffering right now and which other countries could suffer”, the politician affirmed.

Kicillof argued in favor of modifying international financial structures, “to achieve a better, more peaceful world, a world free of vultures.”

The resolution seeks to regulate the restructuring of sovereign debt in order to avoid lengthy litigation battles, as is the case of Argentina in New York. The “Basic Principles of processes of sovereign debt restructuring” received majority support in Latin America, Africa and Asia.

Nineteen renowned economists sent a letter to the UN General Assembly before the vote calling for support of nine principles put forward regarding sovereign debt restructuring, and limiting financial markets speculation.

Following the vote President Cristina Fernández celebrated the UN General Assembly hailing the vote as a “national achievement that could aid other nations in the future”.

Speaking on national broadcast the Argentine president thanked the 136 countries which voted in favor of the resolution proposed by Argentina. She also expressed her gratitude to the nations that abstained, stating that “we know the pressures they suffered”.

“We would like to see our brother nations avoid the same miseries that we had to suffer. Us Argentines should feel proud, the debate and fight was worth it,” she said.

For the Argentine president, the resolution establishes “the basic principles that will control sovereign debt principles, with the objective of ”avoid the continued predations of the vulture funds.”