Argentina suing Citi over debt
The Argentine government said it was suing Citibank in an escalating proxy fight related to a legal battle over paying back the South American country’s longstanding debt.
Economy Minister Axel Kicillof said the government was seeking an injunction to nullify in Argentine courts Citibank’s recent agreement with a group of holdout creditors in the United States that Argentine officials refer to as “vulture funds.”
A Citibank statement said the bank was “disappointed” by the legal actions, and that it was simply trying to comply with a U.S. court order.
The legal fight has its roots in Argentina’s $100-billion default in 2001.