MercoPress. South Atlantic News Agency

New Economy Minister in Uruguay

Uruguayan president Jorge Batlle unexpectedly announced this Tuesday that Economy Minister Alejandro Atchugarry had resigned, and a close aide of the Minister, Isaac Alfie had been named to replace him.

"A political time comes to an end, and a technical time begins", said President Batlle on making the announcement without revealing more details about the resignation.

Mr. Atchugarry the leading Senator of President Batlle group became Economy Minister July 26 last year when Uruguay faced one of its worst financial and banking crises ever and experienced a 15% contraction of its economy.

Mr. Atchurgarry established a six days banking holiday last August and had the Banking Stabilization Bill approved in a desperate attempt to stop a run on the Uruguayan banking system that started as a consequence of the meltdown of neighbouring Argentine economy.

During his year long in office Mr. Atchugarry managed to reach a new agreement with the IMF, rescheduled almost 4,5 billion US dollars of the country's sovereign debt, and was even praised by IMF Director General Horst Koehler for his achievements.

However lately he had several shortcomings: Mr. Atchurgarry was unable to reach an agreement inside the ruling coalition regarding budgetary reform; he was virtually ignored during negotiations to end a medical strike with doctors and nurses occupying public run hospitals; he has been unable to solve a contract conflict with a Spanish water company managing water and sewage services in the country's main seaside resort. In a recent press interview Mr. Atchugarry considered Uruguay was "momentarily stable" but added that "the financial crisis was far from over" causing ripples of fear in the business community. He quickly blamed the press for misinterpreting him.

But the final disqualification came from the President himself. Monday evening on his return from a trip to Paraguay Mr. Batlle praised an Economy Ministry subordinate sacked and currently imprisoned for "excessive zeal" in the accomplishment of his tasks: combating contraband and smugglers. Actually sometime ago the president had ordered Mr. Atchugarry to sack the over zealous officer because he was becoming "a judicial and press nuisance".

According to local political analysts Mr. Atchugarry, 51, and with a long political career is also believed to have presidential ambitions in the coming 2004 election.

The new Minister Isaac Alfie, 41, was until his naming macroeconomic policy advisor of the Uruguayan Ministry of Economy. Mr. Alfie is an economist with graduate studies in the US.