Argentine Senate approves cuts
The plan, put forward by President Fernando De la Rua, includes cuts of up to 13 percent in pensions and public employee wages.
Government spending and heavy debt has kept Argentina in a three-year recession, with the jobless rate topping 16 percent. Investors feared the country would not be able to maintain payments on its $130 billion of debt.
As the largest Latin American borrower of money, Argentina's woes have recently shaken world markets and regional currencies.
The bill could help Argentina get affordable credit again in international markets. Two weeks ago the country found itself effectively shut out of credit markets when it faced double-digit interest rates at a routine treasury bill auction.
However, the measures have been met with anger by union leaders and public workers, who recently held a 24-hour national strike in protest.