Aug. 2 (Bloomberg) -- Bolivia's Finance Minister Luis Gemio resigned late yesterday after commenting on opposition leader Evo Morales's financing.

``I regret the way my comments have been twisted in a strictly economic forum and provoked an over-reaction within and outside the country,'' said Gemio, who was at a conference in Washington at the time, according to a statement on the Ministry of the Presidency Web site.

Gemio resigned after commenting on claims last week by U.S. Undersecretary of State for Latin America Affairs Roger Noriega that the governments of Venezuela and Cuba provided backing for Morales, leader of Bolivia's second-largest party, the Movement Toward Socialism, according to news agency Efe.

Gemio, 49, was first appointed by President Carlos Mesa in November 2004 and was kept in the post by Eduardo Rodriguez, who replaced Mesa in June. Rodriguez has called general elections for Dec. 4.

During Gemio's tenure, exports led by oil and gas rose 17 percent to $1.2 billion through the first half, while the economy was on course to grow 4.5 percent this year, up from 3.6 percent in 2004. Gemio set an inflation target of 3.8 percent this year, while the fiscal deficit was slated to drop to 5 percent of Gross Domestic Product from 5.5 percent in 2004.

-- Editor: Ahlstrand

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net

Last Updated: August 2, 2005 03:08 EDT