Argentina hails UN vote on sovereign debt restructuring

The General Assembly resolutions are non-binding but carry political weight.

Argentina has welcomed a UN resolution creating a new global framework for sovereign debt restructuring.

Foreign Minister Hector Timerman said it was a resolution for economic stability, peace and development.

The UN said countries should protect governments from minority creditors who refuse to go along with the majority in mutually agreed debt restructuring.

Argentina has been fighting US hedge funds who are demanding full payment on defaulted bonds.

The hedge funds had refused to go along with the majority of the country's creditors and accept a restructuring deal.

Argentina defaulted in 2001. The hedge funds scooped up its bonds at a fraction of the price and have since won US court backing to claim full payment.

Argentina struck repayment deals in 2005 and 2010 with more than 90% of its creditors.

The government argues that if it pays the hedge funds the full amount, it would undermine the basis for the repayment deals struck with its other creditors.

Some Caribbean countries have faced the same problem as Argentina.