Ar­gentina su­ing Citi over debt

Los Angeles Times - - BUSINESS -

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.

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