|
The regulators will perform "an integral
inspection" to "guarantee normal functioning of (Citibank
Argentina)," central bank chief Alejandro Vanoli said in a story
published on Sunday in local newspaper Tiempo Argentina, four
days after stripping authority from the bank's CEO.
Last month Argentina's securities regulator said Citibank
Argentina had violated local laws in striking a deal with
litigating U.S. hedge funds and suspended the bank from
conducting capital market operations.
Under the accord, Citibank agreed not to appeal a U.S. court
ruling that interest payments on restructured bonds, subject to
Argentine law, could not be processed if the bank was allowed to
make two one-off payments to help it exit its local custody
business.
On April 1, the central bank said Citibank Argentina head
Gabriel Ribisich could no longer represent the bank because he
"ignored Argentina's legal framework regarding sovereign debt
restructuring."
A spokesperson for Citibank Argentina's parent group, Citigroup,
could not be immediately reached for comment.
Citibank Argentina sees itself as an innocent party caught up in
a years-long court battle between the Argentine government and
the New York-based funds after they were awarded full payment on
their defaulted debt by a U.S. judge.
The judge barred Argentina from servicing its performing debt
until it settled with the creditors, but Argentina insisted
Citibank keep processing payments.
(Reporting by Maximilian Heath and Hugh Bronstein; Editing by
Tom Heneghan)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
