Argentine Ruling Is Criticized

Argentine President Eduardo Duhalde lashed out Saturday at the Supreme Court justices who declared the government’s banking freeze unconstitutional, accusing them of deceit.

“We should let our friends around the world know that we have problems, and one of those problems, regrettably, is one we confront today: a Supreme Court that is totally discredited,” Duhalde said.

In his weekly radio address, he added that the court’s “trickery” could have grave consequences for Argentina’s economic crisis.

The angry words came a day after the court--ruling for a depositor who had demanded his trapped savings--called the 2-month-old banking restrictions “irrational” and an “annihilation” of property rights.

The restrictions limit cash withdrawals from most accounts to about $800 and leave many dollar-denominated deposits frozen until 2003. After four years of recession, the restrictions remain a highly charged symbol of the government’s handling of the crisis.

An Economy Ministry source told the Reuters news agency that Economy Minister Jorge Remes Lenicov would announce a plan this evening aimed at easing confusion over the ruling and heading off a Central Bank move to impose a banking and foreign exchange holiday Monday and Tuesday.

The government plan is expected to include rules for repaying large debts taken out in U.S. dollars and returning some frozen deposits as well as tax breaks to help jump-start the economy.

The confrontation between the executive and judiciary branches also marked a new phase in Argentina’s crisis and prompted scattered protests.

“Regrettably, the decision that they’ve taken is extremely serious,” Duhalde said of the ruling. This “strikes a very strong blow to any chance of an orderly exit from the financial crisis.”

Duhalde scrapped a roll-out of a major recovery package and warned depositors that they shouldn’t expect the court decision to mean they would get their deposits back quickly.

Duhalde, who on Jan. 2 became Argentina’s fifth president since mid-December, has vowed to put the frayed economy back together.

He held emergency Cabinet meetings Saturday with aides to discuss his next steps after urging people to remain patient.

Duhalde suggested that the court, recently a target of nearly daily protests by Argentines who complain that the justice system is failing, appeared politically motivated.