American judge freezes Argentina account in US

(AP) — Officials say an American judge has frozen a government account that Argentina's central bank holds with the U.S. Federal Reserve.

Argentine Economy Minister Amado Boudou made the announcement Tuesday amid a fight over whether the government of President Cristina Fernandez can tap central bank reserves to pay off national debt. An Argentine judge is deciding that question after Fernandez was blocked from firing the central bank president.

Boudou says U.S. District Judge Thomas Griesa in New York has frozen $1.7 million in the account. Boudou speculates the decision came at the request of creditors demanding payment on $20 billion-plus in interest, following Argentina's 2001 default on about $95 billion in bonds.