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Montevideo, May 26th 2019 - 23:12 UTC

Citibank suspended in Argentina “until it revokes agreement with Griesa and holdout funds”

Monday, March 30th 2015 - 06:47 UTC
Full article 18 comments

Economy Minister Axel Kicillof said the suspension of Citibank Argentina, ordered by the National Securities Commission (CNV) financial watchdog, will stay in place until the bank revokes its agreement not to appeal US Judge Thomas Griesa’s ruling that interest payments on Argentina's restructured local law bonds could not be processed if the bank was allowed to make two one-off payments to help it exit its local custody business. Read full article

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  • Welsh Wizard

    Silly children. It's just aiding by the law of its controlling entity. Argentina and its markets are not worth a pinch of shit to Citi...

    Mar 30th, 2015 - 08:47 am - Link - Report abuse 0
  • Idlehands

    I'm not sure I understand the implications of this.

    Citibank planned to pay the March 31st interest and then sell the business on - I assume to an Argentine based bank that is able to process future payments.

    Does this suspension mean they are unable to transfer to a local bank therefore leaving bondholders without future payments? Citibank are clearly going to obey Griesa above any Argentine regulations.

    Mar 30th, 2015 - 09:54 am - Link - Report abuse 0
  • ChrisR

    The unruly children of TDC have failed to take into account that Citi knows who has to be paid, TDC does not on an immediacy basis.

    If Citi deny access to Kickitoff (who has repeatedly said he is not in charge of the situation) and leave the country all hell will ensue.

    Citi no longer have a business in TDC because retail services do not make enough money to operate the bank in the present form.

    Mar 30th, 2015 - 11:20 am - Link - Report abuse 0
  • Conqueror

    Come on, Citi, do the sensible thing. Citibank Argentina is such a tiny proportion of Citigroup's business. To kow tow to argieland is to become an accessory to corruption and criminality. Get a typical bank security truck. Midnight and start loading the truck with the contents of the vault and all important documents. Head east. Not too far to the border. So you may lose US$3.6 billion. But probably not. Make up money bundles. In case of pursuit, take off the wrappers and toss some out. Watch the pursuers stop to pick up the cash. Free cash beats inflation! But, actually, will anybody notice your departure until the next day? Especially if you depart on a Sunday!

    Mar 30th, 2015 - 01:03 pm - Link - Report abuse 0
  • Skip

    Cutting their nose off to spite their face.

    Priceless.

    Mar 30th, 2015 - 01:07 pm - Link - Report abuse 0
  • yankeeboy

    It is amzing how deluded the Kidiots are, they really live in some fantasy world of their own making.
    Citi will abide by whatever Griesa or the US Courts say they couldn't care less what some Rg Thug wants.

    Silly silly creatures.

    Mar 30th, 2015 - 01:18 pm - Link - Report abuse 0
  • Pugol-H

    Somehow I can’t see Citibank renouncing its agreement with the vulture funds.

    So they are going to be staying out of the local stocks and bonds market for at least the foreseeable.

    Question is how much this affects their overall viability in Arg.

    I can’t see that trying to use Argy law to force a NY based company to break NY law, is going to work either.

    A complete and very possibly a messy exit for Citibank is now a real possibility here.

    Mar 30th, 2015 - 02:19 pm - Link - Report abuse 0
  • Idlehands

    The fact that it's a 100% owned subsidiary rather than a branch may make it more difficult for Citibank. They may have to sell the entire operation.

    Mar 30th, 2015 - 03:16 pm - Link - Report abuse 0
  • Klingon

    Great time to get a loan with Citibank. After they get thrown out, there's no one to collect the monthly payment. :)

    Mar 30th, 2015 - 04:57 pm - Link - Report abuse 0
  • ChrisR

    @ 9 Klingon

    Wrong, I'm afraid, Citi will just sell the debt to another 'bank', the debtor stills owes the money.

    Mar 30th, 2015 - 05:17 pm - Link - Report abuse 0
  • Pugol-H

    Unless they do manage to sell it to a local firm, like La Campora Cash Collections SA, or something similar.

    Mar 30th, 2015 - 05:17 pm - Link - Report abuse 0
  • yankeeboy

    11. Another money losing business the Ks can use to siphon off cash..
    why would they ever want that??

    YOY expenses at Aerolinas Argentina are up 58% and CFK says she absolutely doesn't care.
    Why you may ask, she'll just print more pesos.
    There's a Tsunami of inflation that coming to Argentina and will hit right after the next Prez takes over
    Will be fun to watch from afar.

    Mar 30th, 2015 - 09:20 pm - Link - Report abuse 0
  • ilsen

    Maybe sell it to a PayDay loan company, or a pawnbrokers? I expect they are doing good business in Argentina?

    Mar 31st, 2015 - 12:36 am - Link - Report abuse 0
  • Enrique Massot

    The article above is unclear on one thing:
    Griesa allows Citibank to pay interests due March 31.
    In exchange, Citibank will not appeal Griesa's prohibition to pay bonds under Argentine law.
    Griesa, Paul Singer and Citibank are all happy.
    However, Griesa in fact prevents the Citi payment from reaching bondholders by blocking two or three clearance agencies from processing those payments.
    So the bondholders are not going to see their money and the Argentine government is--with reason--unhappy.
    Nice try again, vultures.

    Mar 31st, 2015 - 01:46 am - Link - Report abuse 0
  • chronic

    Four (4) for the price of one (1). Elvis/Critter Gerardo/rotting roadkill/ShitiBanc take it on the chin courtesy of Singer & Co.

    Sweeeeet.

    Mar 31st, 2015 - 03:01 am - Link - Report abuse 0
  • golfcronie

    Citibank ought to say to Killitov that he ought to lift the suspension of Citibank unless the bank accounts of the Kirchners in all the tax havens are made public, that should do the trick, as I expect the banks could come to an agreement to disclose financial affairs of said people.

    Mar 31st, 2015 - 08:59 am - Link - Report abuse 0
  • yankeeboy

    “Clearstream has advised its customers that it does not intend to effect any payment that it may receive in respect of securities falling subject to the injunction,” a Clearstream spokesperson told IFR separately on Monday, referring to the US court order halting the payments.

    I love how one day Kidiots think Griesa gave them a win only to have it slapped right back in their filthy faces.
    :)
    Noose tighter.

    Mar 31st, 2015 - 01:29 pm - Link - Report abuse 0
  • Pugol-H

    @ 12 yankeeboy
    I was thinking more like some local firm buying the debt for pennies in the pound then demanding full payment to the last cent, plus interest of course.

    Leverage used to collect where necessary.

    Oh the irony of that happening.

    @14 Enrique Massot
    I very much doubt that Citibank are very “happy” about any of this.

    They have been a long term investor in Argentina and probably saw themselves as having a future there, before all this.

    In effect what they have done is agree a ceasefire from one side while they exit the crossfire. Something which the Argy gov is intent on stopping them from doing.

    Even disengaging from this dispute is going to be protracted, uncomfortable and costly for Citibank.

    A dispute which they are not actually involved in and have no interest in the outcome of.

    Apr 01st, 2015 - 03:58 pm - Link - Report abuse 0

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