Complaints of corruption reach Milei allies and press markets in Argentina

Argentine financial markets felt another shake on Monday (25) because of Javier Milei’s policy. Dollar debt securities, shares and weight have registered a strong drop in the midst of allegations of corruption that affect people close to the president of Argentina.

The crisis gained strength after the public press release of audios where a voice attributed to Diego Spagnuolo, then head of the disability agency, talks about alleged bribery schemes within the organ. In the sections, he even quotes Karina Milei, sister of the president and chief of staff, as a beneficiary of illegal payments.

Spagnuolo was eventually fired by Milei, but the controversy did not cool. This Monday, Milei avoided dealing directly on the subject in public speech. He preferred to say that he does not care about what he classified as “opposition attacks” in an election year. In Congress, however, opposition parliamentarians already require that the Ministry of Health, responsible for the disability agency, provide explanations.

Meanwhile, the impact was immediate in the markets. The sovereign title due in 2038 fell 2.4 cents to 67.37 cents per dollar, the lowest amount in four months. Already the role of 2041 fell almost 3 cents. The Merval stock index plummeted 4% after accumulating a 3.8% drop in the previous week. The Argentine weight also lost strength: almost 3% fell against the dollar, quoted at 1,356 per unit.

Analysts evaluate that foreign investors are attentive not only to the scandal, but to the possibility of Milei’s political wear. The case is considered particularly sensitive because it reaches a social area – the policy for people with disabilities – and reinforces criticism that the president does not care about the most vulnerable.

The scandal bursts a few weeks of a key election in the province of Buenos Aires and the October legislatures. Milei is betting on expanding her presence in Congress, now controlled by the opposition, but can see her dreams frustrated by the current political scenario that does not favor him.