NEW YORK (Bloomberg) - Citigroup Inc., which received $45 billion in a taxpayer-funded bailout, will suspend foreclosures in coastal areas "hard hit" by the oil spill in the Gulf of Mexico.

The halt is effective starting tomorrow and will apply only to loans owned by the New York-based bank's mortgage unit and meeting "certain other criteria", and not debt that Citigroup services for other lenders or investors, the company said yesterday in an e-mailed statement.

Homeowners in about 25 miles of costal area affected by the spill linked to BP plc., the biggest in US history, will be covered, with evictions also set to be halted if borrowers' properties have already been seized, the company said.

"By putting CitiMortgage foreclosures on hold, we aim to ease the burden on residents of the Gulf states so they can concentrate on the most urgent matters facing them," Citigroup CEO Vikram Pandit said in the statement. "We will continue to explore ways to help people avoid foreclosure so they and their families can remain in their homes and have one less thing to worry about."