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“Citibank has no gun to its head, but the Argentine law”, said Kicillof

Tuesday, September 23rd 2014 - 06:14 UTC
Full article 33 comments
Citibank has a “contract with the country that says that they have to allow payment of money deposited for bonds under Argentine law.” Citibank has a “contract with the country that says that they have to allow payment of money deposited for bonds under Argentine law.”

Argentina's Economy Minister Axel Kicillof responded to Citibank’s lawyer Karen Wagner remarks that the bank had “a gun pointed to its head” which would “probably go off” if the US Judiciary did not allow payment of funds blocked by US Judge Thomas Griesa’s ruling.

“The Citibank has no gun to its head, but the Argentine law,” Kicillof stated.

Before the New York's Second Circuit Appeals Court ruled to dismiss an appeal by Citigroup and Argentina that sought to overturn Griesa’s order blocking the payment of Argentine bonds, Wagner had told the Court: “If we obey, we have a gun to our head, and the gun will probably go off.”

The all powerful Argentine minister said in an interview with a Buenos Aires radio station that the Citibank “has no gun pointed to its head, but the Argentine law” and that it has a “contract with the country that says that they have to allow payment of money deposited for bonds under Argentine law.”

Griesa initially ruled for Citigroup, which has a branch in Argentina, but on July 28 reversed course, blocking future payments by the country on U.S. dollar-denominated bonds issued under Argentine law.

Last week, the Second US Circuit Court of Appeals in New York, in a brief order, declined to find it had jurisdiction because the order Citigroup and Argentina appealed was a “clarification, not a modification” of a prior decision by Judge Thomas Griesa.

Wagner had said that the Citibank would comply with Griesa’s order if the appellate court did not grant its request for a reversal but that it posed “a serious and imminent hazard” for the bank.
 

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  • reality check

    When they start telling them to “honour their contract,” it's time for Citibank to cut their losses and get the fuck out of dodge!

    Honour your contract. Man, that's priceless!!!!!!

    Sep 23rd, 2014 - 06:30 am 0
  • golfcronie

    “ honour their contracy”, remind me again , how many contracts have Argiland renegaded on? How many judgements have been made against them?

    Sep 23rd, 2014 - 06:59 am 0
  • ElaineB

    Does anyone else have the urge to slap Kicillof's smug face? Just because he is doing CFK does not mean he knows anything about running an economy. Actually, that is probably punishment enough; no slap required.

    I cannot understand the apathy amongst the Argentine people. Maybe they are weak from hunger. Or still in bed. Or just used to cruising through life. Or studying.

    Sep 23rd, 2014 - 09:26 am 0
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