Millions of Ueno Bank customers have lost access to their accounts after the lender entered an insolvency process that froze its operations, putting savings, pensions and public money under pressure.
Paraguay’s central bank said Ueno had fallen below its legal solvency ratio after its books were corrected, leaving its capital at less than half the legal minimum.
Ueno had grown from a niche fintech business into a mid-sized bank with about 3 million customers, equal to about 60% of Paraguay’s adult population in a country of 6.5 million people. It also held and administered roughly US$850 million in public funds, including money connected to state institutions and pensions.
President Santiago Peña held a stake in Grupo Vazquez, the company that owned Ueno, until March 2025. Earlier this week, the central bank intervened in the fast-growing digital bank after finding it had breached minimum solvency requirements.
The regulator seized Ueno after determining that it had failed to meet those requirements. Carlos Carvallo, Paraguay’s central bank chief, then resigned as the crisis widened.
Lawmakers accused Peña of conflicts of interest, misconduct, misuse of pension funds and helping shield the bank from scrutiny. Peña has denied wrongdoing and said the affair was a regulatory matter for the courts.
Peña announced his resignation in a video message on social media. ‘I want to apologise to the people if at any point I failed. It was never my intention to betray the trust you placed in me,’ he said. He said he was stepping down to protect stability, social peace and democratic institutions.
Congress refused to accept the resignation and instead moved ahead with impeachment. The lower house voted 78-0 in favour of pursuing an impeachment trial.
A special session convened on Thursday to consider Peña’s resignation was adjourned after lawmakers from his Colorado Party walked out, causing the chamber to lose its quorum. Photos taken near the Congress building that day showed police officers clashing with protesters demanding Peña’s removal from office.
Horacio Cartes, a former president and leader in the Colorado Party, posted a social media statement supporting Peña’s impeachment. The Senate has opened proceedings and summoned Peña to appear on Friday to present his defence.
Eight Ueno executives were subject to arrest warrants and later handed themselves in. Paraguay’s attorney general has ordered three criminal investigations into the bank’s collapse.
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