Argentina appealed the ruling of payment Griesa by Citibank

Argentina appealed the ruling of payment Griesa by Citibank -

The Argentine Government appealed the court ruling by US District Judge Thomas Griesa 12 last March, which banned the Citibank make payments of bonds with Argentina law, facing maturities began operating in the last days of last month.

"in the framework of the dispute with the vulture funds, the Argentina Republic appealed on today's order of March 12 Judge Griesa through which, unusually, extended the effects of so-called orders pari passu to swap bonds governed by Argentina law, aiming, thereby, prevent again that the bondholders restructured charge what Argentina pays and their share in Argentine territory, "said Ministry of Economy, in a statement.

the decision of the New York judge reached even to the "domestic dollar-denominated debt, which in no way can be reached by clause pari passu as is domestic debt, governed by local law," he said Economy.

the statement recalled that "the same District Court had previously recognized that there was no basis to extend the order to these bonds; however, on March 12 reversed their own decisions, exceeding its jurisdiction, again, as he had done with swap bonds governed by English law. "

For Argentina," decisions US justice seriously affect the global financial system and international law. "
Economy added that" his only objective (Griesa) is empowered to play extortion vulture funds. Since Judge Griesa managed not put Argentina in default, now seeks to further injure the bondholders. "

Finally, the statement stresses that" Argentina will exhaust all instances necessary to defend their rights and the bondholders who in good faith entered debt swaps until they arrive at a just, fair, legal and sustainable solution for the Republic and for 100 percent of its creditors. "

last month, Citibank had asked Griesa authorization to process payments in the country's bond swap, Argentina law, payable on March 31, and as he had done on three previous occasions in which he obtained authorization to make them real "one-time".

the argument of the US bank was that Argentina law bonds have no jurisdiction in the United States.

However, this time, Griesa rejected arguments Citibank and said that Argentina can not pay holders of debt without also make payment of a group led by NML Capital, Paul Singer, who won the ruling of the century, 1,300 million upgradeable dollars.

Then it was learned that Citibank and the NML fund filed an agreement, which was signed by Griesa, and was questioned by the Argentine government.

in this private agreement, the bank promised to get out of the business of custody of securities no longer appeal the failure Griesa in question, to change to make two payments, the end of March and June.

This pact, which was then signed by Griesa, had not been notified to the Argentine authorities, so was considered by the national Securities Commission "violation" of national laws.

therefore, to safeguard bondholders swap, the CNV disabled temporarily Citibank to operate in the capital market and ordered payments Argentina aimed at customers of US bank deposited in the Caja de Valores, until the same customers informed on where they want to receive their money.

This measure took effect for payments last 31 March finally they completed in a timely manner.

also, as a result of the agreement signed by Citibank Argentina with the vulture funds, the CEO of Citibank, Gabriel Juan Ribisich, was suspended by the Central Bank.

regard the removal of Ribisich, banking association that brings together the foreign entities (ABA) and the Business Association Argentina (AEA) demonstrated against the decision of the monetary entity to rescind the authorization Ribisich given to arguing that the measure does not fit right

. Source: Telam

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