Argentina’s economy minister said that Citigroup Inc.’s local unit is violating the country’s laws by signing a private accord with hedge fund NML Capital and U.S. District Judge Thomas Griesa without consulting the nation, Bloomberg News reported yesterday. The agreement, announced on March 22 by Citigroup, undermines the government's position because it doesn’t create a clear path for holders of the country’s bonds covered by local law to get paid, Economy Minister Axel Kicillof said. While it allows Citibank to fulfill its obligations as custodian of the debt by passing along payments to other financial institutions in March and June, that money is unlikely to ever make it to bondholders, Kicillof said.
