Argentine President Demands Resignation Of
Central Bank President
BUENOS AIRES - Argentine President Cristina
Fernandez on Wednesday requested the
resignation of the President of the Central
Bank of Argentina Martin Redrado, as he
refused to use the international reserves to
pay the external debt.
Redrado refused to make a guarantee found
with the international reserves to pay the
external debt of 6.569 billion U.S. dollars.
On Dec. 22, Fernandez signed and announced
the Necessity and Urgency Decree (DNU) to
create the Fund of the Bicentenary for the
Un-indebtedness and Stability, aimed to
guarantee the payment of the debt.
At that time Fernandez and Argentine Economy
Minister Amado Boudou said that the fund was
necessary to give certainty to the
international markets.
However, immediately the opposition rejected
the DNU saying that by Constitutional
disposition "the Central Bank is
autonomous," and refused to use the
international reserves to pay the debt.
Later on Dec. 30, the Bi-chamber Commission
for the Control of the DNU rejected the
measure taken by Fernandez and it suggested
that the issue be discussed at the beginning
of the ordinary period to start on March
2010.
Due to Redrado's refusal to obey the decree
of Fernandez, on Tuesday, Chief of the
Ministers Cabinet, Anibal Fernandez told
Redrado that Fernandez requested his
resignation to the Central Bank.
Within all the controversy aroused for the
DNU, the Argentine stock dropped 1.3 percent
at midday after Fernandez requesting the
resignation of Redrado. The activities began
at 10 a.m. local time(1300 GMT) with
2,401.75 points, one hour later the Merval
index dropped 1.73 percent to 2,360.25
points.
Redrado's term at the Central Bank finishes
on Sept. 2010.
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