Tuesday, September 23, 2014

Gov't insists on the need of allowing payment ahead of Griesa hearing

Cabinet Chief Jorge Capitanich speaks at government house.

Cabinet chief Jorge Capitanich refused to make further comments on the new hearing called by US Judge Thomas Griesa for Friday but considered “fair and necessary” that the magistrate allows payment on Argentine bonds under local legislation.

“We have no expectations and we will not comment (on the new hearing),” the chief of ministers said to reporters in his daily press briefing at government house. However he added that the government deems “completely fair and necessary that (Griesa’s) ruling allows Citibank to pay given there are bonds under local jurisdiction, as he has done once already.”

Following the New York's Second Circuit Appeals Court decision to dismiss an appeal by Citigroup and Argentina that sought to overturn US Judge Thomas Griesa’s order blocking the payment of Argentine bonds, Citigroup has asked the judge for an injunction.

Citigroup had argued before the appeal hearing that it faced "a serious and imminent hazard" if it could not process another interest payment by Argentina on US$8.4 billion in bonds the country issued under local laws.

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