BUENOS AIRES, Dec 20: Argentine President Fernando de la Rua resigned on Thursday as opposition Peronist leaders rejected his call for a national unity government amid growing unrest over economic austerity policies aimed at staving off financial collapse.

While a helicopter carried the former president away from the palace, thousands of protesters massed outside erupted in celebration.

“I address you to present my resignation as president,” de la Rua wrote in a message to the opposition-controlled Congress.

“My message today to ensure (the country’s) governability and to form a government of national unity was rejected by the parliamentary leaders.

Peronist Senator Ramon Puerta — the Senate president — is first in line to succeed de la Rua, since Vice President Carlos Alvarez resigned in October 2000. Under the law, he would serve as interim president until Congress meets to select a chief executive to fill the remaining two years of de la Rua’s term.

De la Rua’s resignation came a day after he declared a state of emergency and shortly after the Peronists refused his call to join the government to confront a worsening crisis prompted by nearly four years of recession and an impending default on a 132-billion-dollar public debt.

“We will not bend. We will remain here until de la Rua goes away,” said Ianina Ojeda, a nurse among the protesters gathered nearby, her eyes filled with tears from the effects of gas grenades thrown by police.

Authorities said 20 people have died since street protests and looting across the country erupted Wednesday in opposition to government austerity policies designed to pull the country out of nearly four years of recession and enable it to meet payments on a 132-billion-dollar foreign debt.

The embattled Argentine president shook up his government after the resignation of Economy Minister Domingo Cavallo, whose free-market policies made him a lightning rod for government critics.

He divided the Economy Ministry in two, with the treasury, finance and revenue departments to be overseen by current cabinet chief Chrystian Colombo and production overseen by presidential spokesman Nicolas Gallo.

He also said he was prepared to accept proposals from the Peronists for changes to Argentina’s economic policies as the country skidded toward default.

Among those proposals could be a devaluation of Argentina’s currency, the peso, or dollarization, the pet cause of Peronist former president Carlos Menem.

“They come proposing modifications on exchange rates, and we are going to analyze them and make corresponding proposals to parliament,” de la Rua said.

The president had previously ruled out any change in the country’s currency policy as a solution to the crisis, saying one-to-one parity between the peso and the US dollar would continue.

Four more people died in clashes between protesters and police on Thursday, bringing to 20 the death toll since Wednesday. All the fatalities were victims of gunfire in clashes with police or merchants defending their shops after thousands of Argentines took to the streets Wednesday across the nation in an orgy of smashing, burning and looting.

De la Rua late Wednesday declared a 30-day state of emergency, assuming special powers and suspending constitutional guarantees.

Thousands defied the decree and continued the protests Thursday. Police said more than 500 were arrested.

A main target of popular anger was Cavallo, considered the main proponent of economic austerity measures and the man who as economy minister 10 years ago under Menem pegged the peso to the dollar, stabilizing the nation against inflation but causing Argentina’s exports to drop as the currency became overvalued.

The financial crisis deepened earlier this month when the International Monetary Fund delayed a crucial disbursement of 1.264 billion dollars until the government imposed promised austerity measures and tax reforms.

Argentina made a last-minute payment Friday of part of the 1.1 billion dollars required to avoid default but is still facing an uphill battle to meet payment deadlines later this month.

In Washington, the IMF said it was prepared to work with the new economic team in Argentina in the wake of Cavallo’s resignation, with IMF spokesman Thomas Dawson acknowledging Argentina’s difficulties as it seeks to implement a sustainable economic program.—AFP