(Reuters) -Argentina’s international dollar bonds fell on Monday as corruption allegations threatened to embroil figures close to President Javier Milei, with the 2035 issue down near 3 cents to a four-month low.
Local media published audio recordings last week in which a voice that sounds like that of then head of the disability agency, Diego Spagnuolo, can be heard discussing bribery within the agency. He alludes to Karina Milei, the president’s sister and chief of staff, as receiving bribery payments.
Spagnuolo was later fired by the president. Government officials have not confirmed the authenticity of the audios and Milei has not commented publicly on the issue. His sister has also made no public comment.
Late on Friday, various properties including Spagnuolo’s residence were raided as part of a government investigation.
The 2035 note fell 2.6 cents on Monday to 63.14 cents on the dollar, its lowest level since mid-April according to LSEG data. The 2030, 2038, and 2041 notes also fell about 2 cents each.
The scandal comes weeks ahead of a key local election in the Buenos Aires province and national midterm elections in October, where Milei’s party is hoping to increase its presence in the opposition-controlled Congress.
The libertarian president’s popularity has been resilient even as his policies forced spending cuts and initially increased poverty levels across the country.
(Reporting by Rodrigo Campos and Leila Miller;Editing by Chizu Nomiyama and Helen Popper)
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