Argentina found to be in contempt of court by US judge

A US judge has ruled that the Republic of Argentina is in contempt of court for refusing to obey an order to repay the debt it owes to two US hedge funds.

Argentina has been mired in a US court dispute with the funds, which bought the country's debt at a discount after its default in 2001.

In July, Judge Thomas Griesa ruled that Argentina must repay the funds before it can repay other bondholders.

Argentina refused, sending the country into default.

Earlier on Monday, Argentina's ambassador to the US warned in a letter to US Secretary of State John Kerry that if the country was found to be in contempt of court, it would represent "unlawful interference" in Argentina's domestic affairs.

UN makes call for new approach to sovereign debt crises

The United Nations has called for a new legal system to help countries resolve unsustainable debts.

The immediate spur for the call was the difficulty faced by Argentina.

The country has been subject to legal action in the US courts over a debt crisis more than a decade ago.

The approval of a UN resolution does not necessarily mean a new system will be set up, but it is a sign of international concern about potential implications of Argentina's situation.

The proposal received the support of 124 UN member countries, with 11, including the United States, voting against.

There has been a long-running debate about whether new arrangements are needed to help countries that get into a situation where they cannot maintain