Citigroup Reprieve Is Hollow as Argentina’s Cash Remains Blocked
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Argentina bondholders who are preparing to collect their interest payments next week shouldn’t get their hopes up.
Local bonds due 2033 surged to a five-year high after U.S. District Judge Thomas Griesa said March 20 that Citigroup Inc.’s Argentine branch can pass on the nation’s payments to bondholders on March 31. A week earlier, Argentina’s ability to honor the debt was called into question when Griesa said the notes were subject to a ban on overseas payments until the country resolves a dispute with disgruntled creditors.