Argentina says it has revoked license to operate from US-based Bank of New York Mellon

MarketsAssociated Press

The Argentine government says it is revoking the operating license of a U.S. bank that has played a central role in the dispute that recently pushed the country into default.

Cabinet Chief Jorge Capitanich says the government has withdrawn Bank of New York Mellon's authorization to operate because the bank has failed to comply with its duties as a trustee of the country's debt.

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The bank declined comment on Tuesday's announcement.

Bank of New York Mellon was prevented by a U.S. court order from distributing interest payments for Argentina on July 30 because of an ongoing dispute between Argentine and some of its creditors. The failure to make the payment triggered the default.

The government is seeking to remove the bank as the trustee so it can resume payments.