The government raised the stakes by going to litigation in defense of its decision to dismiss Central Bank Governor Martin Redrado, who opposes the use of $6.5 billion of bank reserves to pay the nation's debts.

Members of Congress and politicians across a wide spectrum of opinion oppose the use of reserves, too, but so far have failed to dissuade Fernandez.

The president and her aides remained defiant Thursday, pointing out their initiative is part of an overall effort to improve Argentina's financial standing in preparation for the country's re-entry into the global financial markets.

Several economic crises, including debt defaults during the 1980s and 1990s, made Argentina a pariah of the financial community, but Fernandez has vowed to clear her country's name and make Argentina creditworthy again.

Industry analysts said they could understand the president's reasoning behind the moves but doubted her methods.

Redrado has received wide support for his argument, and backing for his position has come from politicians who generally are not known to be on his side.

The government Wednesday reaffirmed its resolve to get its way and ensure Redrado's removal for not acceding to requests for the funds transfer.

As the stalemate deepened, Fernandez sharpened her attacks on Redrado and the opposition, not sparing her Vice President Julio Cobos. Fernandez accused Cobos of conspiring to overthrow her and seize power by taking advantage of the crisis.

Cash-strapped Argentina is anxious to pay its 2010 commitments in an attempt to improve the country's financial standing. The government hoped to normalize Argentina's creditworthiness, but the Central Bank row has dashed hopes of an early entry for Buenos Aires in the capital markets, especially amid a "credit drought" worldwide.

Angered by Redrado's position, Fernandez called the governor a "squatter" at the Central Bank and took Cobos to task for seeking to unseat her.

Analysts said that instead of plotting against Fernandez, Cobos might be trying to reach an understanding with congressional leaders to convene the Legislature, which is currently in recess till March.

Redrado has said the reserves must not be used unless there is clear approval for the move from Congress or the courts.

del.icio.us	Digg	Reddit
YahooMyWeb	Google	Facebook

Memory Foam Mattress Review

SPACE MEDIA NETWORK PROMOTIONS Solar Energy Solutions Tempur-Pedic Mattress Comparison ... Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News