This afternoon, the Minister of Economy, Axel Kicillof, and the Minister of Foreign Affairs, Héctor Timerman, attended the United Nations General Assembly, where the Resolution proposed by Argentina, which promotes nine basic principles as a legal framework for sovereign debt restructuring processes, and creates mechanisms to restrict the actions of the vulture funds, was adopted by a wide majority.

During the presentation made by Argentina, Minister Kicillof, satisfied with the outcome of this historic event, said: “This is a key step to avoid that anyone else suffers what many countries, among them Argentina, are suffering today because of the vulture funds. It is a major step towards achieving a vulture free world”.

The basic principles of the sovereign debt restructuring processes obtained majority support, mainly from Latin America, Africa and Asia, with a total of 136 votes in favor, 6 against (United States, United Kingdom, Canada, Germany, Israel and Japan), and 41 abstentions.

“For many countries, the current economic crisis has become a heavy burden that threatens their growth process. We believe the structure of the international financial architecture should be overhauled, and the UN has the capacity to do this,” noted Kicillof.

Meanwhile, Hector Timerman highlighted the active work carried out by the UN: “If this Assembly is able to solve issues that have generated huge global tragedies, how can it not be the ideal forum to deal with the sovereign debt issue? It’s a way to impose restrictions on these pirates of the twenty-first century, which are precisely the vulture funds that have taken advantage of the poverty of many of the countries present here today. We have not come to defeat, we have come to convince. This is an important day.”

The basic principles adopted today, together with the development of improved Collective Action Clauses, and the use of anti-vulture laws, minimize the vulture funds room for maneuver, thereby setting limits on financial speculation.

The following elements are included in the nine principles contained in the resolution: the sovereign right of States to unconditionally restructure their debt; good faith of sovereign debtors and creditors; transparent negotiations; impartial negotiations; equitable treatment; sovereign immunity from jurisdiction and execution; legitimacy; sustainability, and respect for majority restructuring.

“This resolution is important, because we are not only talking about the financial system, as we have been led to believe; this is a resolution dealing with our countries growth potential,” stressed the Ambassador of Bolivia to the UN, and head of the Ad Hoc Committee on Sovereign Debt Restructuring Processes, Sacha Llorenti, in supporting Argentina´s initiative.

In November last year, the United Nations General Assembly adopted Resolution 69/247, by which it mandated the Ad Hoc Committee to draw up a proposed multilateral framework for sovereign debt restructurings. This initiative, promoted by the Argentine government, obtained international support of several countries and leading economists. In fact, in an open letter issued last Tuesday, 19 experts called upon the United Nations to give its support to Argentina´s position.

For over 30 years, the vulture funds were able to meticulously and systematically create a “black hole” regarding sovereign debt restructuring regulations, which allowed them to extort highly indebted countries and obtain exorbitant profits.

“This represents a genuine victory in this struggle and it gives us a lot of power in relative terms, regarding restructuring by a majority. If the majority resolves to do something, no minority can hamper, soil or sabotage the restructuring process,” Kicillof said via teleconference with the President of Argentina, Cristina Fernández de Kirchner, after the General Assembly came to a close.

On national television, Cristina Kirchner highlighted the “successful and majority” vote, and concluded: “Today the Argentines should be proud of what we have achieved. All the discussions and debates were worth it; this was worth fighting for, because on many occasions one must fight to defend one´s interests. This is an achievement obtained by 40 million Argentines for the whole world”.

Also present in the main hall of the UN were the Ambassador to the United States, Cecilia Nahón; the representative at this organization, Maria Cristina Perceval, and the Secretary for International Economic Relations, Carlos Bianco.

Read the original press release from the Ministry of Economy and Public Finance (in Spanish): http://www.economia.gob.ar/kicillof-en-la-onu-este-es-un-paso-fundamental-para-alcanzar-un-mundo-libre-de-buitres/​