Argentina has a problem: this week her bonds denominated in American dollars have fallen rapidly to the lowest level in over four months. Reason? Corruption accusations regarding the immediate surroundings of President Javier Milei.
Argentina with problems
Let’s look at the numbers. The bond with the purchase date in 2038 dropped by over 4 cents – up to 65.71 cent for $ 1. The country’s stock index was lowered by over 3%, and the peso weakened by more than 2% relative to the American dollar.
And all because of “tapes”, on which you can hear, like Diego spagnuolo, a former head of the Argentine Disabled one, allegedly discusses a bribe from pharmaceutical companies. The recording can hear that Karina Milei, the president’s sister and the head of his office, who were to receive a few percent on the amount of the bribe were allegedly involved.
President Milei has already released spagnuolo on Thursday, he considered it a “preventive measure”.
On Friday, federal services also searched 16 locations, including the spagnuolo residence, securing cash, cell phones and documents. According to local media reports, a total of USD 266,000 was found in cash, which was in various envelopes hidden in the car of one of the directors of the pharmaceutical company.
Is it about elections?
Everything takes place shortly before the local elections in Buenos Aires, which will take place on September 7, and parliamentary elections. The Argentineans are to choose MPs for a new term in October. Milei counts on increasing the representation of his libertarian party in Congress, but the scandal may prevent him from.
So far, the government has not confirmed the authenticity of recordings.
Everything is already used by the opposition, which demanded that the head of the Ministry of Health answer her questions in this matter at the Congress Forum. Eduardo “Lule” Mena, adviser to Karina Milei, also involved in the case, described it as a “coarse political operation.”
The scandal is particularly harmful to Milei. First of all, this was already involved in the matter of the Libra token, which turned out to be a tool for deceiving investors. In addition, the matter of “tapes” undermines the government’s anti -corruption program and strengthens the narratives of the opposition that the president “does not care about the weak and the poor.”
So far, Milei himself enjoys high social support: in July 44% of voters supported him.
