After a rare setback to its efforts to expand globally, Citicorp will shut down its banking operations in Sudan.
A spokesman confirmed that Citicorp planned to wind down banking operations gradually, but said that it has not decided whether to close its office in Khartoum.
He cited economic sanctions the United States imposed in November in retaliation for Sudan's support of international terrorism. The sanctions prohibited U.S. corporations from trading with Sudan or investing there and froze Sudanese assets at U.S. banks.
Meanwhile, Citicorp announced that it is adding $175 million of capital to its branch in Chile and $12 million to Citicorp Chile SA, its Chilean banking subsidiary.