FILE - In this April 17, 2019 file photo, Argentina's Treasury Minister Nicolas Dujovne speaks during a press conference at Quinta de Olivos, in greater Buenos Aires, Argentina. Dujovne announced on Saturday, Aug. 17, that he is quitting his post in the government of President Mauricio Macri. (AP Photo/Natacha Pisarenko, File)

BUENOS AIRES, Argentina (AP) — Argentina's treasury minister, Nicolás Dujovne, resigned Saturday and will be replaced by the economy minister of the country's most populous state, a senior official in the presidential office said.

The resignation came three days after President Nicolas Macri announced his conservative administration is temporarily increasing the minimum wage, reducing payroll taxes and implementing other steps to help Argentine workers as the country struggles to overcome sizzling inflation, high unemployment and other economic problems.

Macri acted after a leftist presidential slate that includes his predecessor, Cristina Fernández, turned in a powerful showing last Sunday in primary voting for candidates going into October general elections. Macri's slate did poorly, and the already weak Argentine peso slumped and stock prices fell sharply as investors reacted in worry about the vote results.

In his resignation letter, Dujovne reportedly says the government needs to make "a significant overhaul in the economic area." He says the administration made strides in reducing the government's deficit and reducing taxes, but adds that "we undoubtedly made mistakes."

The presidency official, who agreed to confirm the resignation only if not quoted by name, said Dujovne would be replaced by Hernán Lacunza, the economy minister for Buenos Aires province. Lacunza previously was general manager of the Central Bank. </s> Argentina’s Treasury Minister Nicolas Dujovne has resigned, saying in a letter seen by Reuters on Aug. 17 he believed the government needed “significant renewal” in its economic team amid a crisis which saw the peso plunge this week.

Dujovne said in a letter to Argentine President Mauricio Macri that he had given his “all” to the job, helped tame a significant deficit and trim public spending.

“We have made mistakes as well, without a doubt, we never hesitate to recognize that and did all that was possible to correct them,” he added.

“I believe my resignation is in keeping with my place in a government that listens to the people and acts accordingly,” he added.

Macri has appointed Hernan Lacunza, the current economy minister for Buenos Aires province, as Dujovne’s replacement, a government source told Reuters.

Argentina’s peso was in free-fall for most of this week after a shock primary election result last weekend, when center-left Peronist candidate Alberto Fernandez trounced center-right Macri, in what was widely seen as a referendum on the government’s seeking of a loan from the International Monetary Fund (IMF) and austerity measures it took as a condition for the loan.

The peso depreciated 21 percent by the end of the week and on Aug. 16, in a fresh blow to Macri, ratings agencies Fitch and SP downgraded Argentina’s sovereign debt rating, raising the specter of a default as the October election approaches.

Lacunza is the former general manager of Argentina’s Central Bank and also of the Buenos Aires City Bank. </s> BUENOS AIRES _ Argentina's Treasury Minister Nicolas Dujovne resigned on Saturday, days after President Mauricio Macri suffered a heavy setback in primary elections sending the peso into a nose drive.

In a letter to Macri published by newspaper Clarin, Dujovne said "circumstances" required a "significant renewal in the economic area."

Dujovne, who took the post in 2017 and led bailout negotiations with the International Monetary Fund last year, said that much was accomplished in terms of taming the deficit and trimming public spending, but "without a doubt mistakes were made."

According to Clarin, Dujovne will be replaced by Buenos Aires province Economy Minister Hernan Lacunza.

The minister's resignation comes three days after Macri announced a package of tax cuts and other economic relief measures for workers and companies following a surprise defeat in primaries on Sunday.

Macri took only 32% of the vote, against nearly 48% for opposition candidate Alberto Fernandez. The primaries, which whittled down the number of presidential candidates, were considered an important indicator of public opinion before the presidential elections on Oct. 27.

The defeat, attributed largely to Macri's austerity policies and Argentina's economic difficulties, sent the peso into a nose drive amid fears among investors that a Fernandez presidency could see protectionist policies implemented.

The South American country is in a recession, urban poverty remains high, inflation is running in the double digits and unemployment stood at 10% in the first quarter.

PHOTO (for help with images, contact 312-222-4194):ARGENTINA-TREASURY-RESIGN </s> Argentina’s Treasury Minister Nicolas Dujovne has resigned, saying in a letter seen by Reuters on Saturday he believed the government needed “significant renewal” in its economic team amid a crisis which saw the peso plunge this week.

BUENOS AIRES: Argentina’s Treasury Minister Nicolas Dujovne has resigned, saying in a letter seen by Reuters on Saturday he believed the government needed “significant renewal” in its economic team amid a crisis which saw the peso plunge this week.

Dujovne said in a letter to Argentine President Mauricio Macri that he had given his all to the job, helped tame a significant deficit and trim public spending but conceded: “Mistakes have been made, without a doubt.”

“I believe my resignation is in keeping with my place in a government... that listens to the people and acts accordingly,” he added.

Macri has appointed Hernan Lacunza , the current economy minister for Buenos Aires province, as Dujovne’s replacement, a government source told Reuters. </s> In a letter, cited by Reuters, Dujovne said that the country's government needed “significant renewal” in its economic team amid a currency crisis.

“I believe my resignation is in keeping with my place in a government... that listens to the people and acts accordingly,” Dujovne said in the letter to Argentine President Mauricio Macri.

The country's president has appointed Hernan Lacunza, the economy minister for Buenos Aires province and former general manage of the Central Bank, as Dujovne’s replacement, according to AP.

Earlier in the day, Fitch Ratings announced in a press release that Argentina’s credit rating had been downgraded due to increased political risks driven by the recent electoral defeat of the country’s incumbent president.

Incumbent President Mauricio Macri won only 32.1 percent of the vote against his challenger Alberto Fernandez’s 47.7 percent in last Sunday’s election.

The primary elections results prompted a sharp drop in peso rate and an increase in economic instability. </s> The economy minister for the province of Buenos Aires is set to become Argentina's treasury minister following the resignation of Nicolas Dujovne, government sources told EFE on Saturday.

The move comes after Dujovne presented his resignation in a letter to President Mauricio Macri following a financial crisis in the Argentinian market last week — an adverse reaction from investors to the ruling party's defeat in the presidential primaries on Aug. 11. </s> BUENOS AIRES, Argentina — Argentina's treasury minister, Nicolas Dujovne, resigned Saturday and will be replaced by the economy minister of the country's most populous state, a senior official in the presidential office said. 

 

 The resignation came three days after President Mauricio Macri announced his conservative administration was temporarily increasing the minimum wage, reducing payroll taxes and implementing other steps to help Argentine workers as the country struggles to overcome sizzling inflation, high unemployment and other economic problems. 

 

 Macri acted after a leftist presidential slate that includes his predecessor, Cristina Fernandez, turned in a powerful showing last Sunday in primary voting for candidates going into October general elections. Macri's slate did poorly, and the already weak Argentine peso slumped and stock prices fell sharply as investors worried about the vote results. 

 

 In his resignation letter, Dujovne reportedly said the government needed to make ``a significant overhaul in the economic area.'' He said the administration had made strides in reducing the government's deficit and reducing taxes, but added that ``we undoubtedly made mistakes.'' 

 

 The presidency official, who agreed to confirm the resignation only if not quoted by name, said Dujovne would be replaced by Hernan Lacunza, the economy minister for Buenos Aires province. Lacunza previously was general manager of the Central Bank. </s> BUENOS AIRES (Reuters) - Argentina’s Treasury Minister Nicolas Dujovne has resigned, saying in a letter seen by Reuters on Saturday he believed the government needed “significant renewal” in its economic team amid a crisis which saw the peso plunge this week.

Dujovne said in a letter to Argentine President Mauricio Macri that he had given his all to the job, helped tame a significant deficit and trim public spending but conceded: “Mistakes have been made, without a doubt.”

“I believe my resignation is in keeping with my place in a government... that listens to the people and acts accordingly,” he added.

Macri has appointed Hernan Lacunza , the current economy minister for Buenos Aires province, as Dujovne’s replacement, a government source told Reuters. </s> BUENOS AIRES, Argentina — President Mauricio Macri said Tuesday that Argentina has begun talks on a financing deal with the International Monetary Fund following a sharp devaluation of its currency and amid a difficult "global scenario."

Argentina was forced recently to impose three interest rate hikes to halt a sharp devaluation of its peso.

Macri said he's in talks with IMF Director Christine Lagarde to obtain a flexible credit line to combat economic woes at home and a complex situation worldwide that he said includes rising interest rates, higher oil prices and a depreciation of emerging market currencies.

"The problem we have is that we're one of the countries that depends the most on external financing," Macri said in a televised address. "Faced with this situation, and preventively, I've started conversations with the International Monetary Fund ... A few minutes ago I spoke with Christine Lagarde, and she confirmed we would start working on an agreement today."

He did not say how much Argentina is asking.

The peso fell to a historic low versus the U.S. dollar and Argentina's debt sank in price last week after a string of monetary and fiscal policy decisions that have been criticized by investors.

The government's woes began in December when investors began doubting its commitment to curb consumer prices after it announced a rise in its inflation target to 15 percent. Argentina then lifted its benchmark interest rate to 40 percent and tightened the fiscal deficit target.

"Today we're here to complement those announcements," Treasury Minister Nicolas Dujovne said in a press conference, adding that IMF financing was the best option to protect Argentina from global risks.

Many Argentines have bad memories of the IMF, believing its policies contributed to Argentina's worst economic collapse in 2001. The crisis was so bad that one of every five Argentines was out of work. The peso, which had been tied to the dollar, lost nearly 70 percent of its value. Banks froze deposits. More than 20 people died in protests and looting as the economy unraveled. Argentina eventually defaulted on a debt of more than $100 billion and saw a revolving door of five presidents in just two weeks.

But Dujovne reassured Argentines, saying that the IMF "today is very different than the one we knew 20 years" ago. "It has learned lessons from the past, and I repeat — it has helped our gradual program (of policies)."

Macri, a conservative, came into power in 2015 promising to cut government spending to boost Argentina's troubled economy. But while Macri struggles to reduce the country's high fiscal deficit and tame inflation, Argentines continue to lose purchasing power and many are growing frustrated with rises in fuel and transportation costs.

Argentina's Merval stock index recovered after Macri's announcement, and was falling about 3 percent after starting the day down at about 5 percent. The peso also bounced back to close at 22.8 per dollar after having plunged to a record low of 25.5 earlier in the day.

The IMF flexible credit line is designed specifically for countries with strong fundamentals, a track record of solid policy implementation, and a commitment to continue to implement sound policies and take appropriate corrective action whenever warranted, Goldman Sachs economist Alberto Ramos said in a research note.

"It is unclear to us if Argentina truly fits this description: while the authorities are certainly orthodox and market friendly and committed to implement sound policies, the country's fundamentals are hardly strong," he said.
The Argentinian Treasury Minister, Nicolás Dujovne, resigns after incumbent President Mauricio Macri's loss in a primary vote saw Argentina's peso fall to record lows.