Euroclear will not make payments on some Argentine bonds

NEW YORK: Euroclear informed market participants on Tuesday that it would not process coupon payments on some Argentine local-law bonds that are subject to a US court injunction, according to an official note to the market seen by IFR.

This includes two series of 2.5% Pars due 2038, which have coupon payments due today.

As part of Argentina's decade-long dispute with holdout creditors, a US district judge last week ordered the Belgium-based clearing house to refrain from processing such payments.

"You will not receive any payment on these bonds until further notice," Euroclear said in the note to clients, referring to five-series of Argentine-law securities.

Euroclear's action follows a similar announcement issued on Monday by rival Clearstream.