A banking crisis can change a government in a matter of days. The collapse of Ueno Bank in Paraguay triggered a political storm that culminated in the impeachment and removal of Santiago Peña from office on November 6, followed by his placement under house arrest. 

The economic implications are significant. Nearly three million customers initially lost access to their accounts, disrupting not only their savings but also payments, consumer spending and the day-to-day operations of businesses across the country. 

This week, authorities are focused on restoring confidence as investigations continue. The Ministry of Economy maintains that growth forecasts remain unchanged and that Paraguay's investment-grade status remains secure. This is the Paraguayan government's position. The coming weeks will determine whether markets and investors share that assessment. 

For businesses and investors, the immediate priorities are liquidity, payment continuity and the credibility of the institutional response. Paraguay now faces the challenge of containing the banking crisis before it develops into a broader and more persistent crisis of confidence. 

Attracting investment takes years. Maintaining confidence requires decisive action every day. 

LATAM at a Glance 

• Nearly 3 million customers initially lost access to their Ueno Bank accounts, affecting almost half of Paraguay's population. 

• Approximately US$850 million in public funds were managed through the bank, bringing government finances directly into the heart of the crisis. 

• November 6: Santiago Peña was removed from office and subsequently placed under house arrest, marking a dramatic political fallout from the banking collapse. 

• Two major rating agencies, Moody's and S&P Global Ratings, continue to assign Paraguay investment-grade status, a position the government says remains secure for now. 

Paraguay has been experiencing a period of uncertainty for the past week. However, Auxadi is ready to support multinational groups through its regional experts, helping them manage the financial operations of their subsidiaries in the South American country. Contact our professionals to discuss your needs.

About Auxadi

With 26 subsidiaries across Europe, the United States, and Latin America, Auxadi is today the leading Spanish accounting firm serving multinational companies and real estate investment funds. Through its technology-driven approach and strong client-focused culture, Auxadi acts as an extension of its clients' finance departments worldwide, providing accounting, tax, payroll, transfer pricing, and corporate legal services.

Its proprietary MySPV technology platform, more than 300 employees, and over 1,700 clients have positioned Auxadi as a benchmark in the tech-enabled services sector, not only in Spain but internationally.

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.