Argentine leader rallies forces

Anger and uncertainty is growing amongst Argentines

Argentine interim President Adolfo Rodriguez Saa has been holding emergency talks after protests over the collapsing economy threatened to bring down his week-old government.

He spent Sunday at his residence in the resort city of Chapadmalal meeting provincial governors from his Peronist party, and is expected to address the nation shortly.

Argentines don't have the luxury of watching politicians who are only worried about their personal goals while the country goes up in flames

Carlos Ruckauf,
Buenos Aires governor

Mr Rodriguez Saa must still decide whether to accept the resignations offered on Saturday by his entire cabinet after protests against alleged corruption in his newly-installed government.

A full session with the governors has been put back until Monday after fewer than half of them turned up - apparently because of bad weather.

The BBC's Daniel Schweimler in Buenos Aires says anger and uncertainty is growing with each hour that passes without word from the interim president.

Some of the governors appear at odds with the president.

Mr Rodriguez Saa is meeting governors hundreds of miles from the capital

"Argentines don't have the luxury of watching politicians who are only worried about their personal goals while the country goes up in flames," one, Carlos Ruckauf, governor of Buenos Aires province, told the newspaper Clarin.

Mr Rodriguez Saa faces the dual problem of rescuing the economy and calming public unrest, which refuses to die down.

He had some success on Sunday when he persuaded banks to remain open for extended hours on Monday, to enable customers to withdraw salaries and pensions.

The agreement was "a contribution to civil peace", he said, after weeks of turbulence which have seen 27 people killed in riots and the resignation of Mr Rodriguez Saa's predecessor, Fernando de la Rua.

But a controversial 1,000-peso ($1,000) monthly limit on cash withdrawals remains in place.

Cabinet troubles

The new cabinet offered to resign on Saturday after police used tear gas and water canon to disperse thousands of angry protesters in the capital, Buenos Aires.

The interim government was itself appointed after violent riots which forced the resignation of Mr de la Rua.

Argentina's economic woes

Public foreign debts of $132bn

Unemployment at 18%

Economy in recession for four years

Savers only allowed to withdraw $1,000 a month in cash

2,000 people drop below poverty line each day

Pensions to 1.4m retirees delayed

Many protesters believe that several senior members of the cabinet are responsible for the economic crisis, and are calling for their removal.

Our correspondent says that the cabinet's resignation would give Mr Rodriguez Saa space to manoeuvre, allowing him to choose whether to sack the least popular ministers.

He adds that some analysts believe the president may replace them with the regional governors.

The streets of the capital were largely calm on Sunday after Saturday's riots which left 12 policemen injured and led to 33 arrests.

Cash curbs

As well as protesting against corruption, the demonstrators have railed against the curb on cash withdrawals.

Employment Minister Oraldo Britos has said the banks do not have sufficient funds to ease the current restrictions.

Protesters forced their way into the Congress building on Saturday

With continued fears that the currency will eventually be devalued or that the government will seize money held in banks, many account holders fear they will lose their savings.

"I put my money in the bank for them to look after it - not to be stolen," read one protester's banner.

The interim Peronist government has already announced new measures to control the economic crisis.

Mr Rodriguez Saa has suspended repayments on the country's $132bn debt, announced plans to create one million jobs and promised to introduce a new currency, the Argentino, in the hope of boosting consumer spending.

US President George W Bush has urged him to work closely with the International Monetary Fund and other financial institutions to develop "a sustainable economic plan".

But some analysts say the new populist government has been searching for quick solutions to placate a population which has been plunged from a relatively wealthy society into economic chaos.