LATAM Business Watch · Weekend Edition · Saturday, 7 November 2026 · 3-minute read
Good morning. Paraguay’s Senate removed President Santiago Peña on Friday after the collapse of ueno, the digital bank used by about 3 million people, and the open question for investors is who gets paid on its US$350 million of dollar bonds.
The 60-Second Brief
- The big one: Paraguay ousts its president over a bank failure; ueno bondholders still have no word on treatment. Rio Times
- The money move: Sabesp approves R$2.6 billion in shareholder payouts alongside third-quarter results. NC News
- The signal: US payrolls rose 165,000 in October, far above forecast, lifting the dollar and Treasury yields. Rio Times
Today’s deep dive: Costa Rica Inflation Is 0.55%: How to Index Rents and Loans
The Big Story
Paraguay’s central bank put ueno into resolution on 3 November after its solvency ratio fell below half the legal minimum, five days after the bank announced a US$100 million capital plan. On 6 November the Senate removed Peña, police detained him, and Vice President Pedro Alliana was sworn in to serve until August 2028, Rio Times reports. Deposits are covered up to about US$38,000 each. The state pension fund IPS has roughly US$380 million in ueno bonds and deposits, a figure Latin Times attributes to Reuters and AP. Why it matters: ueno’s 6.70% senior notes due 2031 are New York-law paper sold in March as Paraguay’s largest bank bond; how resolution ranks them will set the price of frontier-bank credit across the region.
By the Numbers
- US$9.3B: Brazil’s October trade surplus, above the US$9 billion forecast, per MDIC data reported 6 November. Rio Times
- 4.1%: US unemployment in October, down from 4.2%, as the 10-year yield closed at 4.867% on 6 November. Rio Times
- 4.5%: Chile’s annual inflation in October as reported, up on fuel costs; we have not yet checked INE’s release. Rio Times
Deal Flow
- Payout · Sabesp approves R$2.6 billion in shareholder distributions with Q3 results, Brazil, water utilities. NC News
- Real estate · Iguatemi takes a 44% indirect stake in a Four Seasons hotel-and-residences project in São Paulo’s Faria Lima district, value not disclosed. NC News
- Buyback · Assaí approves repurchasing up to 11 million shares (about 0.81% of free float) over 12 months, after recurring profit rose 55%. NC News
- Restructuring · A Brazilian court ratifies Kora Saúde’s out-of-court creditor plans, letting the hospital group proceed with its debt reorganisation. NC News
- M&A · Espaçolaser sells three company-owned clinics in Ribeirão Preto and Barretos to franchisees, terms not disclosed. NC News
Around the Region
- Brazil: The government is signalling tighter spending and may make budget freezes count against future years’ limits, after market pressure. NC News
- Brazil: Suzano earned about R$2.1 billion in Q3 on revenue up 36%, though net debt rose to 3.7 times EBITDA. NC News
- Mexico: Car dealers’ group AMDA warns a 2027 cap on corporate tax deductions could put about 1,000 dealerships and 70,000 jobs at risk; automakers were carved out in the Senate version. El CEO
- Chile: Independent truckers ended their blockade of San Antonio port depots on Friday after a government-brokered deal with cargo firms. Rio Times
- Colombia: Goldman Sachs sees a high risk that the government’s fiscal plan slips and expects Congress to dilute it. Rio Times
- Argentina: Monday 9 November is a national holiday for the papal visit, so local markets and offices close. Rio Times
Costa Rica Corner
- Inflation: Annual CPI rose to 0.55% in October, still below the central bank’s 2% to 4% band; we show what that means for CPI-linked rents and loans. Our deep dive
- Tax: Comments on Hacienda’s draft giving taxpayers 30 business days, not 10, to contest an assessment close 13 November. Our explainer
On the Calendar
- Monday: Brazil’s Focus survey of economists; Argentina closed for the holiday. Rio Times
- Tuesday: Copom minutes in Brazil and US October CPI, the last big inputs before the Fed’s 9 December decision. Finance Calendar
- Thursday: Brazil’s October IPCA inflation from IBGE, the first real test of the Selic pause at 13.75%. Rio Times
- 26 November: Costa Rica’s central bank holds its last monetary policy meeting of 2026. BCCR
One Thing to Watch
Whether Paraguay’s new government spells out how ueno’s bondholders and the pension fund rank in resolution. A clear, rules-based answer would contain the damage; a political one would widen spreads on every small-bank issuer in the region. Our read, not a forecast.
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Data as of 7 November 2026. Items reflect public reports on the dates shown; deal terms are as reported by the sources and may change. This is general market commentary, not investment advice.
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