Uruguay · INVESTING

Conexión Ganadera promised steady returns from cattle. Its bankruptcy left a US$272 million shortfall, and investors are learning what that means when a product sits outside financial supervision.

Conexión Ganadera, Uruguay’s largest cattle investment fund, collapsed in early 2025, leaving a US$272 million shortfall in its bankruptcy estate. The gap equals verified liabilities of US$387 million against verified assets of US$115 million, per a filing by trustee Alfredo Ciavattone reported by El Observador on July 20, 2026.

Cattle on a Uruguayan ranch. The cattle fund shortfall reached US$272 million, with no animals registered to the bankrupt companies.

What investors thought they were buying

Conexión Ganadera, founded in 1999, offered savings and investment plans in cattle with a fixed minimum return. Investors believed they owned livestock that would grow in value.

At bankruptcy, the trustee found no cattle registered to either company in the national livestock registry. The creditors’ agreement distinguishes investors “con ganado a su nombre” (with cattle in their name) from those with investment contracts but no real cattle.

That distinction matters: those with cattle receive 33.3 percent of sale proceeds, while contract-only investors get a flat 5 percent. Most of the 4,200 to 4,300 investors fall into the second group.

Who held the cattle and why the central bank stayed out

The central bank, known as BCU, never supervised Conexión Ganadera. In a public warning on February 3, 2022, it said such companies are not registered and therefore not subject to its regulation or control.

Parliament widened the BCU’s reach only in the 2026 budget law, extending supervision to any public fundraising or investment invitation with expected returns. The central bank did not change its own rules; the law did.

The BCU has said that when the frauds occurred, it was not authorized to regulate such activities. Its position on the 2026 court ruling is that no omission occurred in the exercise of its powers.

Court stage and criminal proceedings

Three people face criminal charges, all still imputed with the investigation open. Pablo Carrasco, co-founder and partner, is in preventive detention at Punta de Rieles for fraud and money laundering.

Ana Iewdiukow, Carrasco’s wife, is also in preventive detention at the Florida prison, charged with money laundering. Daniela Cabral, widow of co-founder Gustavo Basso, is under house arrest in Punta del Este, charged with fraud.

Judge Diovanet Olivera extended these measures on August 5, 2026, until February 5, 2027. Basso died on November 28, 2024; Carrasco is the only surviving founding partner.

A separate civil ruling on July 30, 2026, in a contencioso administrativo court ordered the agriculture ministry and the BCU to pay US$25,000 each to four investors, about US$100,000 total. Judge Alejandro Martinez de las Heras rejected the larger claim of US$269,542 plus interest, and any recovery from the bankruptcy is deducted.

Both state bodies have said they will appeal to the Tribunal de Apelaciones en lo Civil.

What the numbers mean for investors

The US$272 million shortfall is not a direct loss figure for investors. It includes non-investor creditors, among them a contested tax claim by the DGI of about US$13 million that concursal justice rejected.

The trustee’s report, filed on July 20, 2026, covers verified claims and assets. About US$35 million is due for distribution under the June 2026 creditors’ agreement.

Investors presented about 4,000 claims, and the agreement covers more than 85 percent of representative credits. The exact recovery for each investor is not yet determined.

Uruguay’s trade imbalance with China

China is Uruguay’s top export market, but the trade balance has flipped. In the first half of 2026, exports to China fell to US$1,285 million, down 15.9 percent year on year.

Imports from China rose 19.6 percent to US$1,659.3 million, creating a US$374 million deficit. In the same period of 2025, Uruguay ran a US$187.1 million surplus.

Uruguay XXI reports that 6,180 Uruguayan firms imported goods from China in the first semester of 2026, each buying at least US$1,000. Only 142 Uruguayan firms exported to China in that period, excluding free trade zones.

In July 2026 sales to China led all destinations at US$235 million, but fell 35 percent year on year.

China’s share of goods exports stood at 26 percent in 2025, when total exports reached US$13.493 billion, the best in a decade. The asymmetry between many importers and few exporters is growing.

What foreign investors should watch

The case shows the risk of products outside financial regulation. In Uruguay, cattle investment funds were not supervised until the 2026 law.

Investors should check whether an offering is registered with the central bank. The BCU’s public warnings are available, and new rules require sworn declarations within 60 days.

No criminal conviction has been issued in any of the three cattle fund cases. All charges remain allegations as the investigation continues.

Frequently Asked Questions

Sources

• www.elobservador.com.uy
• www.elobservador.com.uy
• www.infobae.com
• www.infobae.com
• www.ambito.com
• www.uruguayxxi.gub.uy
• chinalasamericas.com
• www.cronista.com