Argentina criticizes US judge for allowing Citigroup to process country's next bond payment

Associated Press

Argentina's government is again questioning a U.S. judge's impartiality in a long legal battle with creditors over bonds left over from the country's default in 2001.

U.S. District Judge Thomas Griesa ruled Monday that Citigroup Inc. could process an $85 million interest payment due Dec. 31 by the South American country on bonds issued under its local laws.

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But Argentine Cabinet Chief Jorge Capitanich said Tuesday that the decision by the judge in New York is additional proof he sides with "vulture funds."

Argentina defaulted in July after Griesa ruled in favor of investors who President Cristina Fernandez's government derides as "vultures" for rejecting Argentina's restructuring offers following its record $100 billion default in 2001.

The creditors are demanding payment of some $1.5 billion in unpaid debts.