{"id":58209,"date":"2015-05-18T12:00:17","date_gmt":"2015-05-18T11:00:17","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=58209"},"modified":"2015-05-15T15:39:04","modified_gmt":"2015-05-15T14:39:04","slug":"argentina-sues-citigroup-over-debt-repayments","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2015\/05\/argentina-sues-citigroup-over-debt-repayments\/","title":{"rendered":"Argentina Sues Citigroup over Debt Repayments"},"content":{"rendered":"

Bank says some employees of Citi Argentina could face criminal charges due to court battle between South American nation and US hedge funds.<\/em><\/p>\n

\"Argentinian<\/a>

Argentinian officials have since late March \u2018taken certain adverse actions against Citi Argentina, including filing a lawsuit against Citi Argentina and instituting a suspension of certain activities\u2019. Photograph: Justin Lane\/EPA<\/p><\/div>\n

11 May 2015 – <\/em>Citigroup has said it has been sued by Argentina<\/a> and that some employees could face criminal charges there due to a court battle between the South American nation and US hedge funds.<\/p>\n

Argentinian officials have since late March \u201ctaken certain adverse actions against Citi Argentina, including filing a lawsuit against Citi Argentina and instituting a suspension of certain activities\u201d, the US bank said in a filing with the Securities and Exchange Commission.<\/p>\n

Additional potential sanctions include \u201cthe loss of licences to operate in Argentina and criminal charges against bank employees\u201d, Citigroup<\/a> added.<\/p>\n

Citigroup\u2019s travails come amid longstanding litigation between Argentina and US hedge funds NML Capital and Aurelius Capital Management, which did not accept a restructuring deal of Argentinian debt. The funds seek $1.3bn (\u00a3830m) from Argentina.<\/p>\n

US district court judge Thomas Griesa has repeatedly backed the funds\u2019 campaign to attain full debt repayment, ruling that Buenos Aires cannot make payments on the restructured debt to other creditors until it pays the so-called \u201choldout\u201d hedge funds first.<\/p>\n

\"abutres<\/a><\/p>\n

On 12 March Griesa barred Citigroup from handling payments as the custodian of Argentinian bonds. The bank, the nation\u2019s fourth-largest by assets, subsequently announced plans to exit the Argentinian custody business.<\/p>\n

After Citi\u2019s announcement, Griesa permitted the US bank to handle two more payments of interests as custodian while it exits the business.<\/p>\n

However, Argentina has dismissed the US holdouts as \u201cvulture\u201d funds and essentially ignored Griesa\u2019s rulings.<\/p>\n

In late March, Argentinian regulators blocked Citibank Argentina from conducting capital market operations. Argentina\u2019s central bank also suspended the head of Argentina\u2019s Citi operations, Gabriel Ribisich, accusing him of misconduct.<\/p>\n

Citi said in the SEC filing that \u201cthe situation continues to evolve and may result in additional negative consequences to Citi\u2019s franchise in Argentina, some of which could be significant\u201d.<\/p>\n

MORE:<\/strong><\/p>\n

US vulture fund ruling pushes Argentina towards second bankruptcy<\/a><\/p>\n

Go to Original \u2013 theguardian.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bank says some employees of Citi Argentina could face criminal charges due to court battle between South American nation and US hedge funds.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53],"tags":[],"class_list":["post-58209","post","type-post","status-publish","format-standard","hentry","category-latin-america-and-the-caribbean"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/58209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=58209"}],"version-history":[{"count":0,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/58209\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=58209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=58209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=58209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}