NEW YORK, March 12 (Reuters) - A federal judge on Thursday said Citigroup Inc cannot process interest payments by Argentina on some bonds issued under that country's law, a defeat for the cash-strapped nation as it tries to reenter international debt markets.
U.S. District Judge Thomas Griesa in Manhattan said letting Citigroup process the payments on so-called dollar-denominated exchange bonds would violate a requirement that Argentina treat bondholders equally.
Griesa's decision upheld his order last July 28 that blocked Citigroup from making the payments. Citigroup had contended that not making the payments could jeopardize its banking license in Argentina. (Reporting by Jonathan Stempel in New York; Editing by Bernadette Baum)