Argentine President Eduardo Duhalde has set general elections for September of next year, while his government prepared an austerity budget aimed at lifting the country out of economic crisis.

President Duhalde, speaking on state radio, today (Tuesday) announced that voters will go to the polls September 14, 2003, rebuffing calls for early elections to reaffirm his mandate.

In making his announcement, Mr. Duhalde reaffirmed his intent to serve out the term of Argentina's last popularly elected president, Fernando de la Rua, who resigned in December amid violent street protests.

Mr. Duhalde promised thorough electoral reforms, including a brief one-month campaign in which political parties will be limited to spending only money the government will provide. He said he does not plan to run in the 2003 election.

Later Tuesday the government was expected to present an austerity budget that seeks to dramatically reduce the deficit.

Argentina's banks remain closed today as the government prepared to float the devalued peso on the open market Wednesday, ending a controversial dual-currency system.

The peso has traded at one-point-four to the dollar for exports and imports, while its value for other transactions floats on the unofficial black market.

Analysts say President Eduardo Duhalde's decision to float the peso officially is aimed at helping the economy, which has been in recession nearly four years. Argentina has defaulted on 141-billion-dollars' worth of public debt.

(reuters, afp, ap, CR, prev)

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