MercoPress. South Atlantic News Agency

Top line banker joins Cavallo's team

Argentina has a new Central Bank president, Mr. Roque Maccarone, a reputed banker from the private sector who previously also presided over the country's most important and largest financial institution, Banco Nación.

In a brief ceremony President De la Rúa imposed Mr. Maccarone in the job after a special Congressional Committee voted the removal of Central banker Mr. Pedro Pou who was found to have acted too leniently regarding money laundering allegations. The money laundering claims became public during special hearings in the United States Congress involving several American banks, particularly Citicorp.

Mr. Pou was removed for "mis conduct" according to the official release, while Mr. Maccarone was sworn in as "interim" president since his designation needs full Congressional ratification.

Technically and constitutionally the Argentine Central Bank is a completely independent institution, and Mr. Maccarone made it a point to emphasize this condition during the swearing in ceremony.

However, Mr. Maccarone's signals the end of a long dispute between Mr. Pou and Super Economy Minister Domingo Cavallo who accused the former Central Bank president of not keeping his word in an agreement to inject more liquidity to the financial system and help to reduce interest rates.

Local markets reacted positively to Mr. Maccarone's designation who not only has been president of the Argentine Banks Association but is also credited of having helped Argentina overcome the 95/96 financial situation when the Mexican "tequila crisis" spread to the whole continent.

Mr. Maccarone also has the full professional respect of Mr. Cavallo as is believed he will act as a counter balance to the hyperactive and mercurial Economy Minister.The fact Mr. Maccarone accepted the job in the current situation is also interpreted as a strong backing from the financial and banking system to Mr. Cavallo's attempts to reactivate the Argentine economy.