From Buenos Aires Herald · Juan Marcos Pollio · · 1m 30s
Paraguay Banking Crisis Threatens Argentina?
Paraguay's banking crisis may disrupt Argentina's financial stability as Ueno Bank suspends operations.
In brief
Paraguay's banking crisis may disrupt Argentina's financial stability as Ueno Bank suspends operations. Ueno Bank's suspension of 1,000 Argentine employees due to Paraguay's banking crisis could impact Argentina's financial system. Originally reported by Buenos Aires Herald.
Pablo Casas suspended
Pablo Casas, an ITTI employee in Buenos Aires, was suspended for a month after Ueno Bank operations froze.
“Early in the morning [on Tuesday], they shut down all of the bank’s operations without saying anything, without any communication from management, and without explaining why”
Ueno Bank suspension impact
Approximately 1,000 ITTI employees in Argentina faced suspension due to Ueno Bank's operational freeze.
Sudden communication blackout
Employees lost access to Slack, Gmail, and offices after Ueno Bank's operations were abruptly halted.
“It was like a day when they declare a mandatory public holiday”
Official suspension notice
Kaitel SRL notified employees of suspension via email citing Central Bank of Paraguay's intervention on November 3, 2026.
“As a consequence of the resolution and intervention proceedings involving Ueno Bank, ordered by the Central Bank of Paraguay and publicly announced on November 3, 2026, an extraordinary situation has arisen that severely affects the availability of the financial resources necessary for the Company’s normal operations”
Unpaid October salaries
Employees face unpaid October salaries, partially in Argentine pesos and partially in U.S. dollars.
Health insurance concerns
Employees question whether health insurance coverage remains active after suspension.
“We have no idea whether that’s actually true”
Tensions began in July
Tensions started in July with expense cuts, followed by layoffs and Paraguayan press reports questioning solvency.
Ueno Bank's promised tech
Ueno Bank promised to develop Paraguay's tech infrastructure similar to Argentina's PedidosYa and Rappi.
“to develop in Paraguay what we have here in Argentina: a PedidosYa, a Rappi or an Uber, but under different names”
Paraguay's sovereign risk
Paraguay's sovereign risk index rose 25 basis points to 144 points, a 21% increase.
Argentina's financial stability
Economists say Paraguay's crisis won't spill over into Argentina due to its decentralized banking system.
“what happened in Paraguay has a very specific, country-specific component that is not present in Argentina”
In short
Ueno Bank's suspension of 1,000 Argentine employees due to Paraguay's banking crisis could impact Argentina's financial system.
