The Women’s Major Group welcomes the UN resolution which was passed by 124 votes to 11 on Tuesday at 21:30 CET, and which gives the United Nations the mandate to create a multilateral legal framework for debt-restructuring. The initiative for the UN Resolution was triggered by a vulture funds lawsuit, in which a New York court ruled that Argentina must pay vultures in full while blocking payments to other creditors who had agreed to debt restructuring. For many observers, the New York court had been overstepping its mandate and violated Argentina’s sovereignty, which triggered wide support for a multilateral legal framework that would bind national courts. Vulture fund lawsuits have made past debt restructurings more costly and time-consuming, including in the world’s poorest countries. It is expected that the new legal framework will do away with the business model of vulture funds.
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