Half of Argentines below poverty line

Few buyers for produce in Argentina's markets

The authorities in Argentina say half of the country's 36 million people are now living in poverty because of the deterioration of the economy in the worst crisis of the country's history.

The dramatic increase in the number of poor people is due to the value of the basic shopping basket having increased by 35.2% since December

Juan Carlos del Bello

The head of the government's statistical office, Juan Carlos del Bello, said the dramatic increase in numbers of poor was the result of the devaluation of the peso and the rise in unemployment.

"Many of the new poor became so during April, because food prices last month rose by 17.7 percent," he said in a televised statement.

BBC South America correspondent Tom Gibb says the crisis is easily visible on the streets of Buenos Aires, where people sleep out in the parks, queue outside restaurants for leftovers and rummage through garbage to try to eke out a living.

Many people now rely on handouts to survive

Mr Del Bello described the increase in numbers of poor just since April as dramatic, with almost two million people falling below the poverty line in the space of a month.

He blamed this on the increase in prices of food and other basics by more than 35% since December.

Our correspondent says the suburbs surrounding Buenos Aires are some of the worst hit but the poorest areas are in the north of the country, where almost two-thirds of the population are now living below the poverty line.

Legal reforms

Earlier on Friday the Argentine Government won a small victory in its battle to meet conditions imposed by the International Monetary Fund (IMF).

After an angry day in the country's Congress on Thursday, the government gained partial support for legal changes demanded by the IMF before it releases economic aid.

Argentines have not suffered in silence

The lower house eventually passed a measure to amend the country's bankruptcy law, but not before a brawl had broken out among legislators.

The bankruptcy law has been criticised by the IMF because it favours the rights of debtors over creditors.

President Eduardo Duhalde is desperate for speedy approval of changes demanded by the IMF to win billions of dollars in foreign aid.

Economic woes

Argentina's economy has been in the doldrums for several years and reached crisis point last December when mass protests hit the streets.

Argentines have been prevented from accessing their savings and nearly half of the population lives in poverty.

At the end of April, the country appointed its sixth economy minister in 12 months.

Free-market economist Roberto Lavagna became the new economy minister after Jorge Remes Lenicov was forced out of office.

The Argentine Congress had refused to back Mr Remes Lenicov's plan to convert savings into bonds.