Ueno Bank collapse triggers crisis in Paraguay
6.7 Banking Ueno Bank's collapse left 3 million customers without funds, led to President Peña's resignation, and triggered a financial and political crisis in Paraguay, with arrests, impeachment, and currency devaluation.
The collapse of Ueno Bank in Paraguay, after its solvency dropped below 50% of the legal minimum, left nearly 3 million customers without access to their funds and triggered a national crisis. The Central Bank intervened, shutting down the institution and activating guarantee payments for savers. Authorities detained eight executives and charged 27 people in connection with the case. The fallout included a 4% drop in the guaraní against the dollar and widespread protests. Under mounting political and social pressure, President Santiago Peña resigned on November 5, 2026, just before the Chamber of Deputies approved his impeachment. He faced accusations of conflicts of interest due to his previous shares in Ueno Holding until 2025. Vice President Pedro Alliana is preparing to assume office as legal and political proceedings continue. The Central Bank emphasized that this case is isolated and does not reflect the overall health of Paraguay's financial system.
