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Weekly Report - 14 January 2010 (WR-10-02)

ARGENTINA: Teetering on brink of institutional crisis

President Cristina Fernández signed a decree last week dismissing the president of the central bank, Martí­n Redrado, for his refusal to disburse the US$6.6bn requested by the government to place in a “bicentennial fund" to meet debt payments in 2010 [WR-10-01]. A federal judge reinstated Redrado in his position and suspended the decree of necessity and urgency (DNU) passed by Fernández which called for the central bank to transfer the funds. Meanwhile congressmen are arguing that it is they, and not the judiciary, who should deal with the issue of the DNU and Redrado, but congress is hampered by the fact that it is in recess until 1 March.

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