UN assembly calls for legal framework to restructure national debt, a move hailed by Argentina

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The U.N. General Assembly has voted overwhelmingly in favor of a resolution that calls for adoption of a new legal framework to restructure national debts and avoid the kind of speculative action that led Argentina to a second default.

The resolution, proposed by developing countries, was approved Tuesday by a vote of 124-11 with 41 abstentions. The United States voted against it saying such a legal framework would create uncertainty in financial markets.

Argentina's Foreign Minister Hector Timerman hailed the resolution's adoption, saying it will create a new system "that respects the majority of creditors and permits countries to emerge from a crisis in a sustainable way."

General Assembly resolutions reflect world opinion but they are not legally binding.