Argentina braced for 'aid-winning' cuts

Argentines have grown increasingly impatient

Argentina's president, Eduardo Duhalde, is preparing plans for sweeping cuts in state spending as the crisis-ridden country prepares for talks with the International Monetary Fund.

Mr Duhalde is expected later on Friday, in a nationwide address, to announce plans to cut state spending by 1bn pesos ($500m) in an effort to balance the country's books and attract international aid.

Measures in the package were agreed with provincial governors on Wednesday.

But the plans, which will see the workforces of many public sector bodies reduced by a quarter, have prompted unrest among Argentines who have already suffered through previous austerity packages.

About 300 demonstrators stages a noisy protest in Buenos Aires to demand an end to restrictions on bank withdrawals.

"Thieves, we want our money back," chanted protesters, who are believed to have been communicating by e-mail in preparation for further demonstrations.

The government of former president Fernando de la Rua introduced the banking restrictions in December after a withdrawal spree which saw $2bn withdrawn from the country's financial system in one day.

Key meeting

The moves come ahead of a key meeting on Tuesday between Argentina's economy minister Jorge Remes Lenicov and IMF officials.

IMF aid is considered vital to efforts to rebuild the country after three months of political and economic upheaval.

Besides announcing spending cuts, Argentina is also from Monday to allow the peso to float free, in an effort to curry favour with the free-market promoting IMF.

The reopening of foreign exchange markets as welcomed by IMF chief Horst Koehler on Friday as "a good step forward".