The President of Argentina, Fernando de la Rua, has resigned. His resignation comes after riots and looting against his government over the last few days left at least 22 people dead and 250 injured and sparked the resignation of his powerful but unpopular economy minister, Domingo Cavallo.
In a last ditch attempt to remain in power, the President offered to share a coalition government with the Peronist opposition. The offer was swiftly declined.
At least 22 people are now known to have died in the disturbances across the country, which is on the brink of national bankruptcy. The government had declared a state of emergency.
Up to 20,000 took part in looting in the Buenos Aires suburbs. Many were shot dead by shopkeepers defending their shops.
Mr Cavllo, who introduced a number of measures including limiting the amount of money bank account holders could remove from their accounts, resigned earlier today along with the entire cabinet.
Mr Cavallo's austerity measures triggered the unrest. The thousands of demonstrators in Buenos Aires defied a government-imposed state of siege to decry mounting austerity and poverty in the early hours of this morning.
They cheered and blew car horns as news of Mr Cavallo's resignation reached them. Crowds filled main squares outside Congress and the presidential palace overnight to celebrate the news. They chanted and waved Argentine flags and handkerchiefs in the air.
Earlier, police said that seven people had died – the figure has now risen to 22 - in looting incidents and clashes with them. They said that another 138 people had been injured, including 76 police officers, and 551 people had been arrested during the street protests.
Mr Cavallo was appointed nine months ago to tackle Argentina's $132 billion foreign debt. He is the third economy chief to quit in a year. Argentina is undergoing a major financial crisis after four years of recession.
Mr de la Rua said yesterday that the Government had set aside $7 million in emergency food aid to help those in urgent need. He also told protesters to halt violent demonstrations and the looting of stores across the country as he declared a 30-day state of emergency.
