Argentine Foreign Minister lead UN debate on sovereign debt
The Foreign Minister of Argentina, Hector Timerman, Argentina lead Tuesday the delegation to New York (USA) in the historical debate of the General Assembly of the United Nations on the need for a new legal framework for restructuring of sovereign debt.
The initiative arose from the dispute with the vulture funds and failures York Judge Thomas Griesa, backed the G77 + China.
The G77 + China determined unanimously to raise the level UN debate on debt and the creation of a new convention for the treatment of the liabilities of countries, a topic that had historically been handled by the International Monetary Fund (IMF) .
Approved the establishment of the regulatory framework, the new scheme would be created in the span of a year. Timerman said Argentina a few weeks ago to present his specific proposal before the end of 2014.
Recently, the Argentine Economy Minister, Axel Kicillof, explained that the project proposes that if a country restructures its debt, and that plan is accepted by 66 percent of bondholders, the other 33 percent must accept these conditions as in any restructuring of the business environment.
Sovereign Payment Act
On Thursday, Argentina’s Senate approved the draft law on local Sovereign debt payment that seeks to guarantee the payment of bondholders who did not enter the exchanges in 2005 and 2010.