UN approves debt restructuring measure helpful to Ukraine: media

The nonbinding resolution approved by 136 UN members urges courts to "respect the decisions adopted by the majority of the creditors" and says a country "should not be frustrated or impeded by any abusive measures" by minority creditors seeking redress in the courts, RFE/RL reports. 

It says member countries should adopt principles that would protect sovereign governments from minority creditors which refuse to go along with the majority in mutually agreed debt restructurings.

The United Nations' overwhelming vote calls for a new global framework for sovereign debt restructuring aimed at avoiding cases like Argentina's grinding legal battle with "vulture" creditors.

The World Bank and International Monetary Fund have warned that the Argentina's struggle with predatory hedge funds that have won U.S. court judgements demanding full repayment of the nation's debt highlights a problem that could affect other countries struggling with heavy debts.

One such country is Ukraine, which has had difficulty getting major creditors, like Russia, to accept a debt writedown.