UN trade agency says U.S. court ruling on Argentina debt doesn't comply with U.S. law

GENEVA, June 25 Wed Jun 25, 2014 11:24am EDT

GENEVA, June 25 (Reuters) - United Nations trade agency UNCTAD said on Wednesday that the recent U.S. court ruling on Argentina's debt erodes sovereign immunity and is not in compliance with the country's own U.S. Foreign Sovereign Immunities Act

It said in a statement the rulings "set legal precedents which could have profound consequences for the international financial system".

The 2nd U.S. Circuit Court of Appeals ruled last week that Argentina cannot continue to pay creditors who agreed to restructure their bonds after its 2001-02 default on $100 billion in debt unless it also pays $1.33 billion to the holdouts demanding full payment.

(Written by Jeremy Gaunt in London Editing by Jon Boyle)