Could Paraguay’s banking crisis spill over into Argentina?

On November 3, 2026, Pablo Casas awoke to discover he had been suspended from his job at ITTI, an IT systems company providing support to the Grupo Vázquez holding company, including Ueno Bank. Ueno Bank, a Paraguayan-origin bank, had become a focal point in Argentina's financial crisis, leading to a freeze on customers' savings and impeachment proceedings against President Santiago Peña.

Approximately 1,000 workers based in Argentina, who were responsible for providing IT services to the conglomerate, were affected. They were abruptly suspended without any communication or explanation from management. Casas and another employee, Leandro Vildoza, learned of the situation through news reports in Paraguay. The company's subcontractor, Kaitel SRL, informed the employees that the suspension was a result of Ueno Bank's resolution and intervention proceedings ordered by the Central Bank of Paraguay.

The suspension affected employees on vacation and those on medical leave, as their leave was also suspended. The company had not yet paid the employees' October salaries, which were normally deposited in both Argentine pesos and U.S. dollars. The employees are considering taking collective legal action over the unpaid wages and the way their suspensions were handled.

Tensions began building in July when employees were asked to cut expenses, followed by layoffs affecting around 200 employees in Argentina and an unknown number in Paraguay. Reports emerged questioning the company's solvency and criticizing the Central Bank of Paraguay's inaction. Despite the company's promises of technological development in Paraguay, the situation left employees feeling blindsided and uncertain about their futures.