Ex-Argentine President charged over bank irregularities

  • 14/05/2016
Former Argentine President Cristina Fernandez (Reuters file)
Former Argentine President Cristina Fernandez (Reuters file)

By Hugh Bronstein

Former Argentine president Cristina Fernandez has been indicted over accusations that she oversaw irregularities in the central bank's sale of US dollars in the futures market while she was in office.

Federal Judge Claudio Bonadio charged Fernandez, her former economy minister Axel Kicillof and former central bank chief Alejandro Vanoli with "unfaithful administration to the detriment of public administration," according to court papers.

Friday's ruling, which gives a green light for prosecutors to put Fernandez on trial, may be appealed. There was no arrest warrant.

The accusation is that the central bank took billions of dollars' worth of money-losing positions in the futures market ahead of a widely expected devaluation of the Argentine peso.

Fernandez, who heads a large faction of the Peronist party, stepped down in December at the end of her second term.

Her successor, Mauricio Macri, won the presidency on a platform of ditching currency controls that he said were strangling the economy. Since lifting the controls in mid-December the peso has weakened by about 30 percent to 14.1575 per US dollar.

Fernandez last month accused the Macri government of political persecution after testifying in court about the central bank's dollar-buying operations.

The transactions referred to in the case involved US$5 billion (NZ$7.4 billion) to US$17 billion, according to court papers published by Argentina's Judicial Information Centre.

"It's impossible to believe that a financial operation of this size ... could have been carried out without the approval of the highest executive level of the national government," the ruling said.