International consensus on the sovereign debt restructuring

The General Assembly - which includes 193 countries - on the resolution submitted by South Africa by a majority of 136 votes against 6 votes, with 41 abstentions, according to Reuters. Unlike the Security Council, which has the authority to issue decisions are legally binding, the General Assembly resolutions are not binding, but it has a political weight. The resolution urges debtors and creditors to "act in good faith and in a spirit of cooperation to reach a consensus to re-order 'sovereign debt.
He says the decision "Every sovereign right to draw a macro-economic policy, including the restructuring of sovereign debt which should not be thwarted or hampered by any arbitrary state action." The vote came after a year and a day on the approval of the General Assembly to negotiate and to adopt a multilateral framework for the operations of sovereign debt restructuring legal action.
The resolution also said that debt restructuring should lead to a stable position for the debt preserves the rights of creditors and at the same time supporting economic growth, while Argentina welcomed the adoption of the resolution.
It says countries like the United States - that voted against Alaqrar- The legal mechanism for debt restructuring operations Stbdhir uncertainty in the financial markets. Argentina and has the support of procedure of the United Nations on the principles of debt restructuring, as the country was indeed in South America has defaulted on bonds worth $ 100 billion in crisis in 2002 pushed millions of Argentines from the middle class to fall into the clutches of Fiqr.anthy 29