Argentina to slash subsidies, public works spending

Argentina's Economy Minister Luis Caputo announced on Tuesday the devaluation of the peso by over 50 percent to the dollar, as the new government seeks to tackle the country's deep economic woes.

He also announced a reduction in the state's generous subsidies of fuel and transport, without saying by how much. He compared the country's chronic addiction to spending more than it earns to a household budget and said the country had posted a fiscal deficit for 113 of the past 123 years.

Year-on-year inflation is currently at 140 percent, with new figures to be announced on Wednesday. He said infrastructure projects would be carried out by the private sector in future.