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In the U.S., the conflict is generating criticism of the country
La Nacion
January 08, 2010

by Silvia Pisani
U.S. Correspondent

WASHINGTON.- Argentina came back yesterday to eclipse as an issue of interest the centers of power and analysis in this city, but not in the best way. In coinciding ways, the abrupt removal of the president of the Central Bank and beyond that the leadership of Martin Redrado raised doubts about the institutional quality of the country and about the credibility of the government.

"The government could argue that what it's doing is legal. But beyond those arguments, there is a perception about what happened and what could happen and it's not seen as something encouraging Nobody can say that this removal will strengthen confidence in Argentina among the international financial community," said Michael Shifter, vice president of the Inter-American Dialogue. "This raises the uncertainty about the country, and in a particular way, about the independence, from now forward, that the Central Bank can have," he said.

From the State Department, however, they were more cautious: "We are following the situation closely," they said.

The measure neither won over the holders of debt in default. "That a president fires the head of the Central Bank in place of opting for normal institutional proceedings is serious. It sparks serious questions about the independence of the entity, something basic in the confidence necessary for international business and for a country," said Robert Shapiro, head of the American Task Force, the entity that won backing of the State Department in its demands.

Explicit solidarity

"This is decidedly bad," said an economist accustomed to dealing with international credit organizations. "From now on, it will cost more for the Argentine government to gain the backing of the Treasury Department and the Federal Reserve," he predicted.

Redrado has innumerable friends and acquaintances in this country, as many at the government level as in international financial organizations, investment banks and the academic community. As this edition went to press, many contacted us to express their solidarity. And even invitations were suggested. "Martin is the one who has less to lose in all this," said a lobbyist dedicated to regional issues.

Others predicted difficulties for Minister Boudou's arguments when he travels to this country, a trip announced for next week.

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