Monday, February 22, 2016

Argentina moves to drop US appeal over local bond payments

The national government on Monday moved to drop its appeal of a US judge's ruling that blocked Citigroup Inc last year from processing interest payments to holders of $2.3 billion in bonds issued under the country's local laws.

A federal appeals court in New York had been set to hear the case on Wednesday. But in court papers, Argentina's lawyers said recently elected President Mauricio Macri's administration had decided not to pursue the appeal.

The motion came after US District Judge Thomas Griesa on Friday signaled his willingness to lift injunctions placed on debt payments owed to creditors that participated in past restructurings after the country's $100 billion default in 2002.

Argentina earlier this month proposed paying $6.5 billion to resolve litigation with creditors that did not participate in those 2005 and 2010 restructurings and had been suing for payment on defaulted bonds