Paraguay’s President Santiago Peña announced his resignation Thursday after the collapse of Ueno Bank left millions of customers unable to access their money and triggered widespread protests across the country.
The crisis began Tuesday, Nov. 3, when Paraguay’s central bank intervened in the digital lender over serious financial problems. Banking services stopped working, leaving customers unable to withdraw savings, make transfers, or use payment cards. The bank served approximately 2.94 million customers, representing nearly 60% of Paraguay’s adult population. Its failure also raised concerns about hundreds of millions of dollars in public funds held by the institution.
What caused Ueno Bank’s collapse?
Paraguay’s central bank launched a formal resolution process after discovering that Ueno’s solvency ratio had fallen below half the legal minimum. Regulators identified poorly documented loans to companies linked to the bank’s owners. They also found accounting problems that weakened the lender’s reported financial position.
Ueno had expanded rapidly since its launch in 2021, becoming one of Paraguay’s largest digital banking providers. The institution held approximately $850 million in public-sector deposits, including funds belonging to government agencies. The collapse added to concerns about the stability of financial institutions, an issue that has also affected Europe.
Millions lose access to savings as protests spread
The closure sparked demonstrations outside bank branches in Asunción and other cities. Retirees, workers and students demanded access to their money, while bank employees protested over unpaid wages. Authorities announced that eligible deposits were protected up to 228.3 million guaraníes, approximately $37,700, per depositor. The central bank also began arranging repayments and transfers to other financial institutions.
Paraguay President Santiago Peña has suddenly resigned after Ueno Bank completely collapsed overnight.
Roughly 60% of Paraguay's population held their money in Ueno Bank and woke up unable to access any of their money. pic.twitter.com/rSdIgV34u9
— Pubity (@pubity) November 5, 2026
Concerns over deposit safety have previously fueled banking crises in Greece as well. During Greece’s financial crisis, depositors withdrew billions of euros amid fears of restrictions on bank withdrawals.
Why did Paraguay’s president face impeachment?
Peña’s resignation followed mounting pressure over his previous business ties to Ueno’s controlling shareholder, Grupo Vázquez. Thirty-five lawmakers accused the president of conflicts of interest, misuse of pension funds, and failure to prevent financial misconduct. Peña previously held shares in Ueno Holding, which he said he sold in 2025. Lawmakers also questioned loans he received from the bank and the handling of public deposits.
Paraguay’s Social Security Institute held approximately $355 million at Ueno, representing about 9% of its investments. The controversy also led to the resignation of central bank chief Carlos Carvallo, who previously headed Financiera Ueno.
Despite Peña’s resignation announcement, the Chamber of Deputies voted Thursday unanimously to impeach him, sending the charges to the Senate. Prosecutors have charged 27 bank officials and associates over alleged financial irregularities. The crisis has disrupted household finances and business activity, while raising concerns about financial oversight and the protection of public funds in Paraguay.
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