Nobel laureates call on UN convention on sovereign debt

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Joseph Stiglitz, Nobel Prize in economics make calls convention vulture funds. (Photo Archive)

The conflict of Argentina against vulture funds has raised concerns among international specialists in economics, including several Nobel Prizes, which called on the United Nations (UN) convention on debt restructuring.
The Nobel laureates Joseph Stiglitz and Robert Solow, most other intellectuals specialized in economics, sent a letter to Secretary General Ban Ki-moon, to support the implementation of a Convention on the restructuring of sovereign debt, reported Argentine media .
The letter noted that “the sovereign debt markets play, today a prominent role in the global economy” and warns that the crisis of the same “can disrupt development process significantly.”
Faced with this dilemma, suggested that “in such circumstances should be a way to restructure debts” to ensure orderly start a new point to greater equity.
The letter is signed, plus Solow and Stiglitz, the vice president of the Brookings Institute, Thermal Dervis, and professor of economics at Jawaharial Universisty Nehru, New Delhi, and Executive Secretary of IDEAS, Jayati Ghosh, Argentine Foreign Minister Hector Timerman among others.
Experts noted that all countries have developed mechanisms to resolve these issues neatly in cases of private debts, but “unfortunately, there is no comparable instrument for sovereign debt.”Faced with the onslaught, which goes to the threats of the vulture funds and New York Judge Thomas Griesa, the Argentine government seeks to maintain its policy of sovereign payment even before the opposition of political locales- with legislation granting jurisdiction to the Central Bank for payment of debts.
The bill has already received the endorsement of Senate committees, which referred it to the full of that legislative house.