GLOBAL ECONOMY

Citibank's headquarters in Argentina inspected by central bank regulators amid debt fight

A woman walks by a Citibank branch in Buenos Aires, Argentina, Tuesday, March 17, 2015. Citibank said Tuesday it was getting out of the business of making bond payments for Argentina, the latest fallout from a bitter court fight between the South American country and a group of bondholders in the U.S. (AP Photo/Victor R. Caivano)

A woman walks by a Citibank branch in Buenos Aires, Argentina, Tuesday, March 17, 2015. Citibank said Tuesday it was getting out of the business of making bond payments for Argentina, the latest fallout from a bitter court fight between the South American country and a group of bondholders in the U.S. (AP Photo/Victor R. Caivano)

Argentina's central bank has sent regulators to inspect Citibank's headquarters after the leader of the branch was suspended amid a legal battle over the country's debt.

Government news agency Telam reported Monday that regulators were working to verify whether the bank was able to maintain normal operations following CEO Gabriel Ribisich's suspension last week.

The dispute is the latest fallout from a long-standing legal battle between Argentina and a group of U.S. creditors that refused to accept debt swaps in 2005 and 2010.

New York District Judge Thomas Griesa has ruled that Argentina can't pay its restructured debt without paying the holdout funds. Citibank had been processing bond payments for the restructured debt.

Ribisich was suspended after the bank reached a deal with the holdout funds to stop processing payments.

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