Argentina reveals 'shocking' deficit

The Argentine government has announced a huge $11bn budget deficit for 2001.

As late as November, the previous government had predicted a deficit of $ 7.8bn.

That was already well above the $ 6.5bn target agreed with the International Monetary Fund in return for $ 8bn in emergency aid.

Speaking on local radio, Cabinet Chief Jorge Capitanich said Finance Secretary Oscar Lamebrto had told him of the "shocking number."

He said plummeting tax revenues from an economy in a tailspin were to blame.

The announcement came as lawmakers gathered to debate a bill that to devalue the peso and give President Eduardo Duhalde's government emergency powers to rebuild the shattered economy.

Duhalde is said to be counting on using citizens' hard currency savings temporarily to bolster Argentina's bankrupt accounts and keep the country limping along.

He also wants to protect small-time debtors by converting loans up to $ 100,000 into pesos.