The Argentine government is warning Citibank that it could lose its license in the South American country if it follows the order of a U.S. judge.
The Ministry of Economy said Friday that it has to process payments to bondholders or lose its license. The warning came a day after U.S. District Judge Thomas Griesa told Citibank it cannot let its Argentine branch process payments to bondholders unless U.S. bondholders are paid as well
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It's part of an ongoing dispute stemming from Argentina's default in 2001 on $100 billion of debt.
The judge has repeatedly ruled that U.S. hedge funds must be paid roughly $1.5 billion they are owed if Argentina pays interest to other bondholders who swapped their bonds for sharply discounted bonds.