Economy Minister Domingo Cavallo quit Argentina's embattled government as President Fernando de la Rua was set on Thursday to accept his resignation and that of a number of other ministers, a government source said Cavallo's exit amid the worst civil unrest in a decade at mounting austerity and poverty came as all members of De la Rua's Cabinet offered their resignations.

"The whole cabinet presented their resignations. De la Rua is evaluating, but will accept some of them. This includes Cavallo's," the source said on condition of anonymity. The source did not say which other resignations De la Rua was to accept. The resignations came just hours after the government declared a state of siege, giving it special powers to end looting and riots that have left at least four dead.
Cavallo had failed to jumpstart an economy many analysts say is sliding inexorably toward potentially the biggest debt default in history and a devaluation that would bankrupt thousands.

Bureau Report