MercoPress. South Atlantic News Agency

Argentine Economy Minister Denies Resignation.

Argentine Economy Minister Roberto Lavagna, the most influential member of President Kirchner's cabinet has denied rumours that he is to resign.

His spokesman Armando Torres said that an article published in the Financial Times saying that he was quitting next January to run for the presidency in 2007 was "stupid''.

The minister said that the prestigious newspaper's opinion was mere "pressure of our creditors on Argentina" he was referring to bond holders who are refusing to accept the government's proposal of paying back only 25% of their savings. Lavagna recently said that the country will not change its position.

The article in the Financial Times also said that the Securities and Exchange Commission in the United States will not approve the Argentine proposal regarding the reconstruction of its debt.

"The SEC is a technical organism, with a high reputation in the world, which does not have to approve the offer," said Lavagna.

The economy minister and also Cabinet Chief Alberto Fernandez both denied that the relationship between Lavagna and the Planning Minister Julio de Vido was under strain. A few days ago Lavagna spoke publicly of his differences with De Vido regarding the way to renegotiate contracts with public service companies privatised in the last decade. The minister, however, did admit that he had differences with his colleague on the matter.

Kirchner rectified the regulating organism and appraised the "firm" position De Vido has adopted who has said that it is possible to solve the concessionaire's problems without increases in public services charges, which the companies are demanding.

Minister Lavagna also had to deny he has a bad relationship with the head of the Central Bank Alfonso de Prat Gay, which some local sectors are saying will replace Lavagna when he quits as minister.

Lavagna is considered the most influential and prestigious member of the Cabinet, whose merits are well recognised regarding the recovery of the Argentine economy, following the worst recession in history.