Ueno Bank collapse in Paraguay prompts President Santiago Peña to resign
The accounting black hole at Ueno Bank wipes out public funds, leaves thousands without access to their deposits and drives Paraguay into its worst institutional crisis in years.
Paraguayan President Santiago Peña has resigned following the state takeover of Ueno Bank, a digital lender linked to him. According to KahawaTungu, the Central Bank of Paraguay placed the bank into resolution on November 3, 2026, after its solvency ratio fell below the legal minimum. This intervention froze the accounts of approximately 3 million customers and prevented access to funds via apps, cards, or branches.
The bank's collapse froze the savings of millions of people, according to NPR. KahawaTungu reports that the bank managed between $800 million and $850 million in public funds, including roughly $380 million from the state pension fund, Instituto de Previsión Social.
Following the resignation, lawmakers voted to impeach Peña, as reported by NPR. Live Mint reports that lawmakers from the long-ruling Colorado Party joined the opposition in a 78-0 vote to back the impeachment after three days of demonstrations in the capital, Asunción.
Brief written by urgent.news from Punch, Punch Nigeria, NPR, Live Mint, KahawaTungu — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- Paraguay president resigns after bank takeover sparks protests punchng.com
- Paraguay president resigns after collapse of Ueno digital bank cointelegraph.com
- Ueno Bank collapse in Paraguay prompts President Santiago Peña to resign euronews.com
- Paraguay’s President Resigns as Collapse of Bank With Close Ties to Him Sparks Crisis wsj.com
