Uruguay Cattle Fund Bankruptcy Leaves US$272 Million Shortfall
Conexión Ganadera's collapse left a US$272 million shortfall in its bankruptcy estate, exposing what happens when cattle funds sit outside central bank regulation. The post Uruguay Cattle Fund Bankruptcy Leaves US$272 Million Shortfall appeared first on The Rio Times .
Conexión Ganadera, Uruguay's largest cattle investment fund, collapsed in early 2025, leaving behind a US$272 million shortfall. The bankruptcy estate showed verified liabilities of US$387 million against verified assets of US$115 million, according to trustee Alfredo Ciavattone's filing reported by El Observador on July 20, 2026.
Conexión Ganadera, established in 1999, promised minimum returns through cattle investments. Investors believed they owned growing livestock, unaware the company had no cattle registered in the national livestock registry at the time of bankruptcy. The central bank, BCU, had never regulated Conexión Ganadera, stating on February 3, 2022, that such products are not subject to its supervision.
Despite the BCU's lack of power to regulate these funds, it issued warnings. Three individuals face criminal charges for fraud and money laundering, with the investigation ongoing. A separate civil ruling ordered the agriculture ministry and BCU to pay US$100,000; an appeal is pending. The US$272 million shortfall includes non-investor creditors and a disputed tax claim.
In the first half of 2026, Uruguay's exports to China decreased by 15.9 percent, while imports rose by 19.6 percent, creating a US$374 million deficit. The asymmetry between many importers and few exporters is increasing, highlighting the risks associated with unregulated investment products.
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