Paraguay’s Ueno Bank collapse has left millions of customers unable to access their accounts and pushed President Santiago Peña into an impeachment crisis. The central bank began winding-up procedures on November 3, 2026, after finding the lender had fallen below minimum solvency requirements.
Peña tendered his resignation on November 5, but Congress did not accept it. The Chamber of Deputies voted unanimously to impeach him, while a joint session of both chambers could not reach a quorum to decide on the resignation. The Senate has opened impeachment proceedings, and Peña has said he will defend himself.
Ueno, part of the Grupo Vázquez conglomerate, launched in 2021 and had around three million customers, according to DW. Its operations were suspended after the central bank’s intervention, leaving customers unable to withdraw funds.
Investigations examine lending and political ties
Paraguay’s public prosecutor announced investigations into suspected financial crimes. On November 4, 27 people were formally charged, including eight Ueno executives, over allegations that include breach of trust, attempted fraud and failure to keep required records. The accusations have not been established in court.
Investigators are examining whether Ueno lent beyond legal limits to companies linked to its owners and whether transactions concealed a shortage of capital. The timing of regulatory action is also under scrutiny.
Peña had business ties to Grupo Vázquez until March 2025, but has denied direct involvement with the bank. Central Bank president Carlos Carvallo, appointed by Peña in 2023, previously chaired Financiero Ueno, the finance company that became Ueno Bank. Carvallo resigned on November 3 at Peña’s request.
The central bank has started winding-up proceedings. Deposits up to the equivalent of $37,600 per customer are protected by law, and legislation allows about $20,000 per saver to be paid out early. The timing of payments and the treatment of larger balances remain unsettled.
Nicole French 
Reid Bentley