Thursday, March 19, 2015

Griesa's 'absurd ruling' has 'limited' effects - Kicillof

Economy Minister Axel Kicillof warned Griesa''s lates ''absurd'' ruling had ''limited'' effects on the country''s debt policy.

Economy Minister Axel Kicillof has used his Twitter account to say the latest ruling by US District Court Thomas Griesa saying the Citigroup cannot process Argentine sovereign debt payments had “limited" significance.

On March 12, the New York magistrate rejected a request by the Citigroup to vacate an injunction prohibiting the bank from processing payments on dollar-denominated Argentine exchange bonds, saying such a move “would violate equal treatment provision of a 1994 Argentina bond issuance.”

According to Kicillof, such decision “affects only the Citigroup clients holding bonds under Argentine law issued during the restructuring of the debt,” accounting “barely” for 3 percent of all the bondholders under the country’s legislation.

The rest of the bonds that have been issued over the past years “are not affected by this new and absurd order by Griesa,” the minister tweeted today.

“The (judicial) order has created a problem between the Citibank and its clients with whom it functions as the custody of such bonds,” Kicillof explained adding that “the rest of the authorized financial entities “continue to carry out their duties normally.”

“The payment obligation (of Argentina) expires when funds are deposited in the Central of registration and liquidation of public indebtedness instruments (CRYL) of the Central Bank,” the economy minister highlighted.

“Noncompliance by the Citibank with its clients does not create noncompliance on behalf of our country.”