Uruguay ex-minister, bank chief indicted over failed airline

A court today indicted the head of one of Uruguay's top banks and its former economy minister on abuse of power charges linked to the collapse in 2012 of the country's national airline.
A judge said former economy minister Fernando Lorenzo and the current president of the Bank of the Republic, Fernando Calloia, would be allowed to remain free pending the start of trial.
At a hearing in Montevideo, Prosecutor Juan Gomez said both men exceeded their authority by giving Spanish airline Cosmo a deal in October 2012 that allowed it to purchase aircraft belonging to struggling Pluna Airlines, the flag carrier of Uruguay.

The arrangement allegedly was offered without determining that sufficient measures had been undertaken to rescue the bankrupt airline, among other "irregularities" charged by prosecutors.
Cosmo was the only company to submit a bid to purchase planes belonging to Pluna for a discounted price of USD 13.6 million, officials said.
Lorenzo resigned his post last December, after being appearing at a pretrial hearing related to the charges.