After escalating disagreements with President Nestor Kirchner, Argentina's Economics Minister Roberto Lavagna - the man credited with bringing Argentina back from the brink of financial ruin - stepped down Monday, DPA reported. Kirchner also replaced his foreign, defence and social ministers. The markets in Buenos Aires plunged 5 per cent and the dollar climbed to more than 3 pesos in reacting to the news. The president of the central bank, Felisa Miceli, will replace Lavagna, according to cabinet chief Alberto Fernandez. Lavagna took over the office in March 2002, and was seen as one of the major pillars for Argentina's economic recovery. Foreign Minister Rafael Bielsa was to be replaced by his deputy, Jorge Taiana. Defence Minister Jose Pampuro will be replaced by the ambassador to Venezuela, Nilda Garre. Social Minister Alicia Kirchner, the president's sister, will make room for Carlos Nadalich, currently deputy head of the state social and pension fund Pami. Under Lavagna's stewardship, Argentina managed to emerge from a serious financial and social crisis and is on a rapid growth upswing. The country's 102 billion dollars in international debt was restructured earlier this year, more than three years after the country defaulted in December 2001.
