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The week may have started with Republicans getting wiped out in the US midterm elections — which will have consequences for that country’s relationship with most or all Latin American countries, notably Mexico, Brazil, Argentina, Colombia and Venezuela, and for the future of data centers all over the continent. But by Friday, some homegrown surprises took center stage. Most notably, government-intervened Ueno Bank in Paraguay.
The bank debuted a $350m 6.7% five-year bond in March, and back then Paraguay was a fiscal and economic model in Latam thanks to its fast-growing economy, something that’s easier when you have a small base. President Santiago Peña, a former IMF economist, was focused on financial reforms, doubling GDP within 10 years, and achieving investment grade ratings for the sovereign. There was some media chatter about Peña’s role as a shareholder in Grupo Vázquez, Ueno’s holding company, and how the country’s social security institute was depositing millions of dollars of pension funds at the bank. But Peña dismissed the accusations as media fearmongering.
But things quickly took a turn for the worse this week when central bank BCP filed a 200-page criminal complaint with the prosecutor’s officeagainst the bank and...
