US Court OK's Citibank to process Argentina bond payments

AP News
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Posted: Mar 23, 2015 1:08 PM

NEW YORK (AP) — Citibank says a U.S. court has authorized it to process two debt payments for Argentina without facing contempt charges over a long-running dispute with U.S. bondholders.

The U.S. bank acts as a custodian for some Argentine bonds and has been in the middle of a bitter court fight over the South American country's debt obligations.

The court stipulated it will not restrict Citi from having its Argentine branch process payments on dollar-denominated Argentine bonds on March 31 and June 30.

Citibank, which issued a statement over the weekend, has said it was getting out of the business of making bond payments for Argentina due to an "unprecedented international conflict of laws."