Argentina’s Bonds Slump as Graft Probe Pushes Economy to the Brink

Published in

The corruption scandal that broke in Argentina last week could be a political godsend for President Mauricio Macri -- and an economic nightmare for the country. A federal judge is probing hundreds of alleged bribes paid by construction companies, energy suppliers and electricity generators to members of the former government of Cristina Fernandez de Kirchner, Bloomberg News reported. While the accusations may derail Fernandez’s hopes of a comeback, aiding Macri, they could also halt investment in a country already threatened with recession after a collapse in the peso. Police have arrested more than a dozen former government officials and business leaders since Aug. 1, the day that La Nacion published an investigation into a decade of alleged corruption under Kirchner and her late husband. Companies named in the probe include power generator Albanesi SA, the construction companies IECSA SA and Grupo Roggio, and Grupo Techint, which owns the oil exploration company Tecpetrol SA. Read more.