On July 5 2011, the US Court of Appeals for the Second
Circuit held that the immunity provided to foreign central bank
assets under the Foreign Sovereign Immunities Act (FSIA) does
not depend on whether the foreign central bank is independent
from the parent state. In the view of the court, the issue as
to whether the assets of a foreign central bank are attachable
assets under the FSIA depends on whether the assets are used
for central bank functions.
On this basis, the US Court of Appeals for the Second
Circuit rejected the attachments made by the bondholders of the
Republic of Argentina on the assets held in the Banco Central
de la República Argentina's (BCRA) account at the
Federal Reserve Bank of New York (FRBNY) The case was NML
Capital v Banco Central de la República
By way of background, in December 2001, the Republic of...