UN approves resolution on restructuring national debts

The UN General Assembly has approved a resolution setting out nine principles to restructure national debts, calling on debtors and creditors “to act in good faith and with a cooperative spirit” to reach an agreement.

The non-binding resolution, overwhelmingly adopted by a vote of 136-6 with 41 abstentions, follows on two other resolutions approved by the 193-member world body that were spurred by the speculative action that led Argentina to a second default.

The US, UK, Germany, Canada, Japan and Israel all voted against the resolution.

The resolution asks all countries and international organisations to support and promote the nine principles, which were drawn up by a wide-ranging committee established by the assembly.

Argentine foreign minister Hector Timerman called it “a resolution in favour of economic stability, social peace and development”.