MercoPress. South Atlantic News Agency

“A repeat of the Argentine situation” in Uruguay “virtually impossible”

Vice-president elect Danilo Astori

Uruguayan Vice-president elect Danilo Astori said that the institutional-financial “solidness” of the country makes it virtually “impossible” a repeat of the current confrontation between the Argentine government and the Central bank.

Former Economy minister Astori interviewed by the Uruguayan press said that, with no intention of meddling in Argentine affairs, there are no chances or even closeness to such a scenario.

“In Uruguay institutions are strong and the financial system is solid. With the new charter the Central Bank has strengthened regulatory and supervision mechanisms, so under these circumstances I consider it is virtually impossible for a repeat of the Argentine situation in Uruguay”, he underlined.

In Argentina faced with mounting debts to be cancelled this year, the Cristina Fernandez de Kirchner administration decided to create a Bicentennial Fund with 6.6 billion US dollars from the Central Bank, but the bank’s president refused saying the issue must be first considered by Congress.

Mrs. Kirchner then tried to sack the bank’s governor Martin Redrado but the courts upheld his arguments that the issue must be addressed by Congress, thus freezing all funds, and similarly with his ousting. The government is appealing the injuctions.

Astori also anticipated a complete “continuation” of the current economic policies which have been implemented by the frits government of the Broad Front catch-all coalition. He added that outgoing president Tabare Vazquez will also be “a standing source of advice” and “inevitable reference”.

“We’ve managed to advance very much in the last five years and if we continue on this path and further strengthen the course, we will be in a position to reach development levels of the first world”, said Astori.

The administration of President elect Jose Mujica and Astori takes office next March first.