Paraguay Names New Central Banker After Lender Is Taken Over

Update

Paraguay Names New Central Banker After Lender Is Taken Over

The final figures of financial losses and the exact volume of lost funds remain uncertain while audits are being finalized. The interim government will have to deal with the long-term consequences of failing to act preventively against Ueno Bank. Peña’s resignation does not automatically resolve the crisis but shifts it into a new phase of political negotiation and financial survival for civil society. ^[2]

Update

Ueno Bank Crisis: The Central Bank takes control, savings under pressure

The Central Bank of Paraguay took control on Tuesday morning of a major digital lender, Ueno Bank, which has close ties to the country's president, Santiago Peña. This threw the savings of millions of customers and hundreds of millions of dollars of public funds into uncertainty. ^[3]

Members of the Central Bank's board voted on Monday to place Ueno Bank under special administration. The decision came after the bank's solvency ratio fell below half the minimum level prescribed by law, according to ABC News. ^[3]

Special administration proceedings, distinct from court-supervised bankruptcy, allow authorities to transfer the deposits of the distressed bank to more stable financial institutions before liquidating remaining assets to repay creditors. ^[3]

Ueno Bank manages funds for approximately 3 million customers, equivalent to about 60% of the country's adult population. ^[3]

The institution manages public funds worth $800-850 million, including approximately $380 million from the public pension and health fund (IPS). ^[3]

The intervention marks an escalation in a scandal following President Santiago Peña since 2023. ^[3]

Peña appointed Carlos Carvallo, a former Ueno director, as Governor of the Central Bank, a decision criticized by opponents for conflict of interest. ^[3]

Peña was a business partner of Grupo Vázquez, the conglomerate that owns Ueno, until March 2025. Ueno maintains that Peña was never a shareholder, and both deny illegality; the Central Bank states that Carvallo abstained from decisions regarding Ueno. ^[3]

The Central Bank will gradually close Ueno's operations, protecting customers' savings and preventing disruption to other banks, insisting that the problem does not affect the financial system as a whole. ^[3]

Governor Carlos Carvallo stated that regulators had signaled concerns regarding loans granted by Ueno to affiliated companies, irregularities he intends to report, accusing the media of exacerbating the crisis. ^[3]

Authorities will appoint representatives to take over leadership, value and protect assets, investigating those responsible for the financial deterioration. ^[3]

Deposit guarantees cover up to 228 million guaranis (approximately $38,000), paid within 15 days, with a possible 15-day extension. Full reimbursement is not guaranteed for amounts above the limit, aiming for 'the highest possible level of protection'. ^[3]

Recovery of funds exceeding the guaranteed limit depends on the special administration procedure, according to Gladys Vera, financial director of IPS. ^[3]

Pensions will be paid normally from other sources, but the IPS fund will initiate legal action and identify another bank for the 32,000 pensioners who used Ueno. ^[3]

The Ueno Bank crisis triggered massive protests in Asunción, surpassing economic dissatisfaction and becoming a political crisis targeting Peña. ^[3]

On November 3 and 4, 2026, protesters demanded the return of money, investigation of those responsible, and the president's resignation. ^[3]

The protests began after the Central Bank took control and Ueno services were suspended, with gatherings in the capital center and in front of the Presidential residence. ^[3]

The opposition filed a request for the impeachment of the president and Vice President Pedro Alliana, in response to Peña's links with Ueno's owners. ^[3]

Public and political reaction manifested through street movements and constitutional procedures, highlighting the government's isolation and the need for financial stabilization. ^[3]

The extensive impact on the adult population and the pension system underscores the seriousness of measures taken to avoid an economic collapse. ^[3]

Details regarding how citizens and institutions can recover their money involve significant legal and logistical complexity. ^[3]

The structure of the special administration procedure provides a framework for an orderly transition, but with major costs and uncertainties for depositors. ^[3]

Consequences for the reputation of financial institutions and the political class will be closely monitored in future economic and political analyses. ^[3]

International and local media coverage highlights the scale of the crisis and its direct link with executive leadership. ^[3]

The evolution of events will depend on the authorities' ability to maintain confidence in the remaining banking sector. ^[3]

The involvement of the pension fund in recovery procedures is an indicator of social vulnerability. ^[3]

The process of identifying those responsible for financial losses will involve complex investigations. ^[3]

The historical context of the relationship between banks and politicians in Paraguay is essential for understanding the current crisis. ^[3]

Update

President of Paraguay, Santiago Peña, resigns in the context of the banking crisis

The President of Paraguay, Santiago Peña, resigned on Friday, in the context of the banking crisis caused by Ueno Bank's takeover by the Central Bank. The decision follows the withdrawal of political support for the head of state by the President of Congress, Basilio Núñez, and the leader of the Colorado Party, Horacio Cartes, according to Deutsche Welle. A group of 35 opposition parliamentarians and disidents from the governing party had filed an impeachment request in the Chamber of Deputies, which has 80 members. Parliamentarians accused Peña of conflicts of interest, misuse of pension funds, and alleged institutional interventions to protect Ueno Bank. Peña had held shares in Ueno Holding, the group to which the financial institution belongs, but sold them in April 2025. Documents submitted by parliamentarians also mentioned two loans obtained by him from the bank, considered by the initiators of the procedure as possible indications of undue financial advantages. ^[4]

Almost three million customers are affected by account blocks at Ueno Bank. Ueno Bank had approximately 2.94 million customers, equivalent to about 60% of Paraguay's adult population. The crisis worsened on Tuesday when the central bank triggered the resolution or closure procedure of the financial institution, due to the discovery of serious deterioration of solvency indicators. The banking app, card payments, and transfers became unavailable, and branches suspended operations. Numerous customers appeared at the bank's headquarters without being able to withdraw their savings. ^[4]

The situation also affects significant public funds. According to data presented by Deutsche Welle, Ueno managed approximately $800 million from public sector deposits, representing almost a quarter of its total deposits. Among institutions with money placed at Ueno was the Paraguay Social Security Institute, responsible for managing pensions and medical service funds. It held approximately $355 million in the bank, equivalent to about 9% of its investments. ^[4]

The message posted by President Santiago Peña to the Paraguayan people on X attempted to calm public discontent. Santiago Peña's post on X from November 5, 2026. ^[4]

Eight directors of Ueno Bank have been arrested, including founder Miguel Vázquez and the bank's president, Juan Manuel Gustale. The investigation into the bank's activities led to the arrest of eight people from the institution's management, including founder Miguel Vázquez and the bank's president, Juan Manuel Gustale. Prosecutors have filed charges against 27 employees and collaborators of the financial institution for alleged crimes including abuse of trust and attempted fraud. Lawyers for some of the detained individuals stated they need time to analyze the accusations before formulating a position. ^[4]

The crisis caused demonstrations in the capital Asunción, with pensioners, depositors, students, and employees taking to the streets on Wednesday, demanding the recovery of money and the dismissal of the president. On Thursday, hundreds of bank employees and workers from other companies in the group protested outside the Ministry of Labor, requesting payment of overdue salaries and compensation. ^[4]

Santiago Peña had tried to calm public discontent by promising legislative measures for the rapid recovery of savings. One day before his resignation, Santiago Peña had tried to calm public discontent through a video message in which he promised the adoption of legislative measures so that depositors could recover their money as soon as possible. The scandal had already forced Peña to cancel his participation in the Ibero-American summit in Madrid. ^[4]

Conservative-oriented economist Santiago Peña took over the presidency of Paraguay in August 2023 for a five-year term, which was supposed to end in 2028. His resignation marks a new stage of the political and financial crisis, as authorities must manage both the depositor situation and investigations into the management of public funds. ^[4]

Update

President of Paraguay, Santiago Peña, resigns in the context of Ueno Bank's collapse

The President of Paraguay, Santiago Peña, resigned on Thursday, November 5, 2026, in a video speech, stating that the takeaway is the country's stability and the need to preserve democratic institutions. His temporary successor is Vice President Pedro Alliana. ^[5]

Pedro Alliana is to assume the office of president, according to constitutional convention, after the Colorado Party withdrew political support for the current mandate and the opposition convened an extraordinary session for the impeachment motion. ^[5]

The charges against Peña include conflicts of interest, abusive use of pension funds, and institutional cover-up of Ueno's collapse, which evolved from a fintech player to a bank managing approximately $850 million in public funds. ^[5]

The Central Bank of Paraguay intervened and placed Ueno under guardianship after detecting violation of minimum solvency requirements, leaving approximately 3 million customers (60% of the adult population) unable to access their accounts. ^[5]

'My greatest desire is that the restitution of these funds is guaranteed, that the deposit guarantee fund fulfills its purpose, and that public funds — as well as resources belonging to all Paraguayans — are protected,' Peña said in his resignation speech. ^[5]

Ueno Bank, where Peña previously held shares, has not issued an official public statement about the circumstances of the collapse and takeover by authorities. ^[5]

Update

President of Paraguay, Santiago Peña, resigns in the context of the Ueno Bank crisis

Santiago Peña, President of Paraguay and an ally of Donald Trump, resigned following a crisis that erupted after the collapse of Ueno Bank, an institution with close ties to him.Gândul ^[6]

In total, 3 million bank customers — approximately 60% of Paraguay's adult population — can no longer access their accounts, with operations frozen after the institution entered insolvency proceedings.Gândul ^[6]

Regional context: Will Trump succeed in imposing his policies amidst regional political instability? Note: The targeted action (PSD against the Bolojan Government) is irrelevant to the central event. 'I want to ask the people for forgiveness if I made mistakes. It was not my intention to betray your trust after you elected me,' he said.Gândul 'I have decided to submit my resignation from the presidency of the republic. I do this with thoughts of our country's stability, social peace, and the need to preserve our democratic institutions,' the former president transmitted on Thursday.Gândul Peña lost the support of his own conservative party members due to the bank's failure, and the opposition convened a session to impeach and remove the president from office.Gândul Angry people who could no longer access their bank deposits went out to protest, with reports of fires. Protesters demanded the president's resignation, accused by members of Congress of conflicts of interest, abusive use of pension funds, and the cover-up of the collapse of Ueno Bank.Gândul Ueno Bank, a mid-level bank, managed almost $850 million in public funds. The country's Central Bank imposed guardianship on Ueno after violation of minimum solvency requirements.Gândul In total, 3 million of the bank's customers, in a country with a population of 6.5 million, can no longer access their accounts.Gândul ^[6]

Update

Paraguay Names New Central Banker After Lender Is Taken Over

The collapse of the bank triggered protests that continued for three days in the capital, demanding the recovery of funds and condemning the management of the crisis. ^[7]

Peña announced his resignation in a video published on the X platform, while parliamentarians debated the impeachment procedure at the Legislative Palace. ^[7]

He explained that he is stepping down to protect the country's stability and democratic institutions, invoking 'social peace' and 'the need to keep our democratic institutions'. ^[7]

Resignation does not mean Peña has automatically left office. Paraguay's Constitution stipulates that Parliament must accept or reject the president's withdrawal. ^[7]

The Chamber of Deputies voted unanimously to impeach the president, minutes after the publication of his message. ^[7]

The impeachment procedure can lead to his removal from office only if it receives the approval of the Senate as well. ^[7]

The crisis took on a political dimension through the financial link between Peña and the bank at the center of the scandal. The president had invested in a company associated with Ueno Bank. ^[7]

In the message announcing his resignation, Peña apologized but did not directly accept responsibility for the banking crisis. ^[7]

Update

President of Paraguay, Santiago Peña, resigns in the context of the Ueno Bank crisis

The President of Paraguay, Santiago Peña, resigned on Thursday, November 5, 2026, triggered by the collapse of digital bank Ueno and its links with it. The decision comes at a time when parliamentarians were debating the suspension procedure, and millions of Ueno customers remained without access to their accounts. Later, the Central Bank nominated veteran economist Raúl Vera Bogado as the new governor, to replace Carlos Carvallo, who had previously resigned.Financial Intelligence ^[8]

Santiago Peña motivated his step by 'the stability of our country, social peace, and the need to protect our public institutions', apologizing to the people for any disappointments, but did not directly accept responsibility for the collapse of the financial institution.G4Media ^[8]

In his communication, the former head of state emphasized that 'my priority is one and only: the tranquility of Paraguayans who entrusted their savings to our financial system'.G4Media ^[8]

Peña acknowledged that 'history will judge and analyze what we are experiencing today as it should'.Adevărul ^[8]

Paraguay's Congress will now have to decide whether to accept or reject the president's resignation. The procedure had already begun, with 35 parliamentarians from the opposition and among disidents of the ruling party having already filed an impeachment request. The Chamber of Deputies subsequently voted unanimously to impeach the head of state, but his removal from office still requires the approval of the Senate.Cotidianul ^[8]

The charges against Peña concern conflicts of interest, abusive use of pension funds, serious and systematic neglect of duties, and institutional cover-up of the bank's collapse, which managed public funds worth approximately $850 million, including billions from IPS.Gândul ^[8]

The Chamber of Deputies started debates on a file with these accusations on Thursday.Adevărul ^[8]

In response to the scandal, the president received accusations targeting him for alleged unauthorized financial benefits, especially related to the file involving two loans obtained by him from Ueno, considered indications of undue advantages. Parliamentarians requested the 'removal from office' of the president, who took power in August 2023 for a five-year term.MediaFax ^[8]

Peña had been involved in the crisis triggered by the intervention of Ueno Bank, a private institution with which he had links and which received public funds, including from IPS, the entity managing pensions for most workers in the country.Adevărul ^[8]

Although it is mentioned that Peña sold his shares in Ueno Holding, whose group includes the bank, in April 2025.MediaFax ^[8]

The Central Bank found that Ueno Bank's solvency indicator, a factor that has 2.9 million customers in a country with a population of 6.1 million, fell below 50% of the mandatory legal minimum, due to financial adjustments.MediaFax ^[8]

Ueno Bank, the largest digital bank in Paraguay, had approximately 2.94 million customers, representing around 60% of the country's adult population. These millions of Paraguayans were left without access to their accounts.Adevărul ^[8]

Starting last month, the bank declared that it had in public sector deposits approximately $800 million — a quarter of its total deposits — including money from hydroelectric plant operators in Paraguay.MediaFax ^[8]

On Tuesday, the Central Bank ordered the closure of Ueno Bank after noting the solvency rate fell below half the required minimum.Adevărul ^[8]

The Ueno app, card payments, and transfers ceased to function, and branches closed, leaving customers queuing outside, unable to withdraw their savings.MediaFax ^[8]

Hundreds of employees of Ueno and other companies within the parent conglomerate protested outside the Ministry of Labor, requesting payment of overdue salaries and compensation.MediaFax ^[8]

Pensioners, depositors, students, and workers took to the streets of Asunción, demanding Peña's dismissal and carrying banners with the message 'Give us back our money'.MediaFax ^[8]

As a result of resolution or dissolution procedures, thousands of customers' savings were blocked at this financial institution, known also for sponsoring local football teams.MediaFax ^[8]

Update

President of Paraguay, Santiago Peña, resigns after Ueno Bank collapse

The President of Paraguay, Santiago Peña, resigned a few hours after the country's central bank took over Ueno Bank, which had customers comprising over 60 percent of adults in Paraguay. Peña, facing an impeachment procedure in the context of the banking collapse, stated that he made the decision for 'the stability of our country, social peace, and the need to preserve democratic institutions'. He resigned after slightly over three years of a five-year term, apologized, but did not accept responsibility for the banking crisis. The impeachment procedure was underway when the president made the announcement. The vote in the Chamber of Deputies, 78 to 0, represented a categorical rejection, and the accusations now go to the Senate, where a two-thirds majority is required for conviction and formal dismissal from office. ^[9]

Update

President of Paraguay, Santiago Peña, resigns in the context of the Ueno Bank crisis

President Santiago Peña of Paraguay announced his resignation on Thursday, November 5, 2026, in a video speech, declaring that the main reason is the country's stability and the need to protect democratic institutions.Economica.net ^[10]

According to constitutional convention, Vice President Pedro Alliana will temporarily assume the role of head of state.Economica.net Pedro Alliana is to assume the office of president, according to constitutional convention, after the Colorado Party withdrew political support for the current mandate and the opposition convened an extraordinary session for the impeachment motion.G4Media ^[10]

The charges against Peña include conflicts of interest, abusive use of pension funds, and institutional cover-up of Ueno's collapse, which evolved from a fintech player to a bank managing approximately $850 million in public funds.G4Media ^[10]

'My greatest desire is that the restitution of these funds is guaranteed, that the deposit guarantee fund fulfills its purpose, and that public funds — as well as resources belonging to all Paraguayans — are protected,' Peña said in his resignation speech.G4Media ^[10]

Ueno Bank, where Peña previously held shares, has not issued an official public statement about the circumstances of the collapse and takeover by authorities.G4Media The Central Bank of Paraguay intervened and placed Ueno under guardianship after detecting violation of minimum solvency requirements, leaving approximately 3 million customers (60% of the adult population) unable to access their accounts.G4Media ^[10]