Argentina political squabbling threatens reforms

Argentina's government is facing disarray after the Senate's efforts to meet International Monetary Fund (IMF) conditions led…

Argentina's government is facing disarray after the Senate's efforts to meet International Monetary Fund (IMF) conditions led to a brawl in the lower house of Congress.

Although the Senate voted to abolish a "economic subversion" law that critics say is loaded against bankers, the lower house indefinitely put off its own vote and resorted to fisticuffs in a separate debate over another banking law the International Monetary Fund wants revised.

During debate on changes to a bankruptcy law seen by critics as punishing creditors, deputies lunged at each other after a US flag was thrown onto the desk of the lower house leader by a dissident deputy.

President Mr Eduardo Duhalde, in office only four months after two predecessors quit amid riots sparked by a four-year recession, has sought the speedy approval of the two bills - part of a package that includes steep spending cuts to win billions of dollars in international aid.

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Angry depositors protested outside banks against a government freeze of their savings and plans to give bonds instead of cash to avert a banking system collapse.