BUENOS AIRES _ Argentina's Treasury Minister Nicolas Dujovne resigned on Saturday, days after President Mauricio Macri suffered a heavy setback in primary elections sending the peso into a nose drive.

In a letter to Macri published by newspaper Clarin, Dujovne said "circumstances" required a "significant renewal in the economic area."

Dujovne, who took the post in 2017 and led bailout negotiations with the International Monetary Fund last year, said that much was accomplished in terms of taming the deficit and trimming public spending, but "without a doubt mistakes were made."

According to Clarin, Dujovne will be replaced by Buenos Aires province Economy Minister Hernan Lacunza.

The minister's resignation comes three days after Macri announced a package of tax cuts and other economic relief measures for workers and companies following a surprise defeat in primaries on Sunday.

Macri took only 32% of the vote, against nearly 48% for opposition candidate Alberto Fernandez. The primaries, which whittled down the number of presidential candidates, were considered an important indicator of public opinion before the presidential elections on Oct. 27.

The defeat, attributed largely to Macri's austerity policies and Argentina's economic difficulties, sent the peso into a nose drive amid fears among investors that a Fernandez presidency could see protectionist policies implemented.

The South American country is in a recession, urban poverty remains high, inflation is running in the double digits and unemployment stood at 10% in the first quarter.

PHOTO (for help with images, contact 312-222-4194):ARGENTINA-TREASURY-RESIGN </s> BRASÍLIA—U.S. Commerce Secretary Wilbur Ross laid out a plan including credit and investment to help rebuild Venezuela’s economy under democratic rule, as Washington pushes for new leadership in the struggling nation.

The American plan is contingent on the removal of Venezuela’s authoritarian leader, President Nicolás Maduro, and his replacement with Juan Guaidó, leader of a fractious opposition supported by the U.S. and other countries.

... </s> FILE - In this April 17, 2019 file photo, Argentina's Treasury Minister Nicolas Dujovne speaks during a press conference at Quinta de Olivos, in greater Buenos Aires, Argentina. Dujovne announced on Saturday, Aug. 17, that he is quitting his post in the government of President Mauricio Macri. (AP Photo/Natacha Pisarenko, File)

BUENOS AIRES, Argentina (AP) — Argentina's treasury minister, Nicolás Dujovne, resigned Saturday and will be replaced by the economy minister of the country's most populous state, a senior official in the presidential office said.

The resignation came three days after President Nicolas Macri announced his conservative administration is temporarily increasing the minimum wage, reducing payroll taxes and implementing other steps to help Argentine workers as the country struggles to overcome sizzling inflation, high unemployment and other economic problems.

Macri acted after a leftist presidential slate that includes his predecessor, Cristina Fernández, turned in a powerful showing last Sunday in primary voting for candidates going into October general elections. Macri's slate did poorly, and the already weak Argentine peso slumped and stock prices fell sharply as investors reacted in worry about the vote results.

In his resignation letter, Dujovne reportedly says the government needs to make "a significant overhaul in the economic area." He says the administration made strides in reducing the government's deficit and reducing taxes, but adds that "we undoubtedly made mistakes."

The presidency official, who agreed to confirm the resignation only if not quoted by name, said Dujovne would be replaced by Hernán Lacunza, the economy minister for Buenos Aires province. Lacunza previously was general manager of the Central Bank. </s> Millionaires, construction and finance companies are among the primary donors supporting the Argentine President Mauricio Macri coalition reelection campaign.

Legislation enacted just two months ahead of the Simultaneous and Mandatory Open Primary Elections (STEP) has opened the floor for sponsoring opportunities from legal, privately-owned entities.

The new law, a first for Argentina, came just in time for the primary elections and allows private donations of up to 4.5 million pesos. Lawmakers say it is among several legislations being introduced for transparency, by which it can avoid the scandals experienced during the Buenos Aires elections in 2015 and 2017.

However, as the elections near a close, data shows Macri’s Buenos Aires governmental representative Maria Eugenia Vidal’s campaign’s winnings amount to around ARS$6 million (US$134,820), gained by affluent admirers of the Argentine President Mauricio Macri coalition, Together for Change (Cambiemos.)

Among the most generous are Maxinta SA, a currency exchange company in the city; Jorge Milne, former bank president of the Banco Patagonia; Daniel Diego Van Lierde, president of the mining company Caleras San Juan.

So far, no formal complaints about irregularities with campaign contributions has been filed as of yet, although — with nine days left in the race, critics believe it could still transpire. According to statistics, only one percent of donations are formally reported to authorities, Pagina 12 said. The rest are usually left undeclared.
Argentine President Mauricio Macri receives the U.S. Commerce Secretary Wilbur Ross, who expresses full support from the U.S. for his re-election in the upcoming Argentine elections.