Tuesday, August 26, 2014

Gov’t revokes BoNY authorization to operate in Argentina

Cabinet Chief Jorge Capitanich confirmed that the Office of the Superintendent of Financial and Exchange Institutions has revoked the authorization for the bank of New York Mellon to operate in Argentina.

The decision, formalized by the Central Bank resolution 437/2014 signed yesterday by Central Bank’s President Juan Carlos Fábrega and Superintendent Cosme Juan Carlos Belmonte, is based on BoNY’s “non-fulfilment of the contract” as Argentina’s trustee.

The document states that the bank “does not register active operations since December 2012” and that the BoNY “has not financed the country’s residents since January 2013.”

The resolution revokes the authorization given by the national government to Mariel Verónica García Sturzenegger and María de la Cruz Solares to “act in the country in the name and representation of The Bank of New York Mellon.”

The national Congress is debating this week a bill drafted by the Executive to replace BoNY as Argentina’s restructured bonds trustee for the local Nación Fideicomisos.