Argentine economy minister quits over savings

Argentina's fifth economy minister in just over a year quit last night, dealing a severe blow to President Eduardo Duhalde as…

Argentina's fifth economy minister in just over a year quit last night, dealing a severe blow to President Eduardo Duhalde as he struggles to avert a banking collapse and defuse growing social unrest.

Mr Jorge Remes Lenicov resigned amid a delay, and possible backtrack, by Congress on his savings plan. In an unpopular bid to stop the current drain on banks, Mr Remes Lenicov had proposed to convert an estimated $29 billion worth of frozen savings into government bonds.

No immediate successor was announced.

Mr Duhalde huddled with legislators and provincial governors from his ruling Peronist party, working out how to resolve a crisis some believe could lead to snap presidential elections, a U-turn free market economic policies or the return of a fixed exchange rate.

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Politicians had to drive in a back entrance of the presidential residence as protesters kicked at incoming cars.

"The only thing helping Mr Duhalde here is that no one else wants his job. On the one hand, nobody wants Mr Duhalde to do anything, but nobody wants him to leave, either," said Mr Christian Stracke, emerging market debt strategist at Commerzbank.

A senior ministry source said Mr Remes Lenicov's likely replacement was Mr Alieto Guadagni, energy secretary and Duhalde loyalist with a reputation as an orthodox economist who has reportedly touted a return to a fixed exchange rate.

Thousands of deposit holders banging pots and pans gathered outside a heavily guarded Congress for a second day to protest against any attempt by widely despised legislators to approve the savings-for-bonds plan. On Monday night, frightened Senators had to be escorted under guard from the building.