Citigroup was today given a green light to process around US$5m in Argentine bond payments due on 30th September.
In a hearing this afternoon in New York, Judge Thomas Griesa authorised the bank to process a “one time” payment for bonds issued under Argentine law, thereby exempting it from the ongoing block on the country’s international bond payments.
Citigroup had requested a reprieve saying it was caught between Griesa’s court order and its obligations under Argentine law.
The bank had requested to be exempted from Judge Griesa’s original ruling, saying that its Argentine subsidiary could face severe civil and criminal sanctions if it did not complete the payment.
Judge Griesa will hold another hearing on Monday to determine whether Argentina is acting in contempt of court by approving a law to switch the payment channel for its exchange bondholders from New York to Buenos Aires and circumvent the block.
‘Vulture’ hedge fund NML Capital, which is leading the litigation against Argentina in New York, requested that the judge imposes a daily fine of US$50,000 until the country settles its outstanding debt with the bond holdouts.
UN Condemns Vulture Funds
Earlier today, the UN Human Rights Council approved an Argentine-led resolution condemning the vulture funds.
The resolution, which received 33 votes in favour, five against, and nine abstentions, stipulates that the Council will hold an investigation into how the actions of vulture funds impact on developing countries.
“It is the first time that the United Nations will investigate the activities of international speculators and the consequences these have for people all over the world,” said Argentine Foreign Affairs Minister Héctor Timerman.
“The international community must get involved. This is not a dispute between nations, but two clear sides: one for all countries and the other for the vulture funds.”
The vote comes shortly after the UN General Assembly approved a new resolution to set up a new framework for sovereign debt restructuring.
The post Judge Griesa Authorises ‘One Time’ Citigroup Bond Payment appeared first on The Argentina Independent.