Argentina's minister of economy is criticizing Citibank's agreement with a New York court that will allow the bank to process bond payments for the South American country while it exits the custodial business.

Economy Minister Axel Kicillof on Wednesday characterized the move as "a scam" that violates Argentine law, but he stopped short of saying the government would take action.

U.S. District Court Judge Thomas Griesa had ordered Citibank to stop processing Argentine bond payments, leading Argentina's government to threaten to revoke the bank's operating license if it did not process the bonds. Citibank then announced it would pass the serving of the bonds to another bank.

Last week, the court stipulated it would not restrict Citibank from having its Argentine branch process payments on March 31 and June 30.