Argentine leader changes debt repayment plan, reducing amount of reserves to be used

Argentine leader changes debt repayment plan

BUENOS AIRES — Argentine President Cristina Fernandez announced a new plan Monday to use reserves to pay some of the national debt after legal wrangling complicated her original idea of creating a $6.6 billion fund from reserves.

Fernandez’s new decree calls for the use of $4.1 billion in reserves to pay debt, with a congressional comission overseeing payments.

The original decree announced in December led her to fire the Central Bank chief who balked at setting up the $6.6 billion fund.

But new plan angered opposition congressman Alfonso Prat Gay, who insisted reserves must not be used to pay off debt.

“This is disrespect for the law,” he said.