BUENOS AIRES, Argentina – Citibank says it's getting out of the businesses of making bond payments for Argentina because of a long legal fight in the United States over the South American country's debt repayment.
The bank said in a Tuesday statement it is making plans to transfer Argentina's debt payments to another entity because of "unprecedented international conflict of laws."
Argentina last week threatened to revoke Citibank's operation license if it refused to process payments to bondholders. The move was ordered by a New York judge presiding over the legal fight between the country and a U.S. investment group.
The dispute stems from Argentina's default in 2001 on $100 billion of debt. Most bondholders agreed to debt-swap deals in 2005 and 2010. But a group of U.S. hedge funds has demanded full payment.