Ueno Bank scandal plunges Paraguay into political crisis

The Ueno Bank scandal is currently causing a significant political crisis in Paraguay. The bank is suspected of financial irregularities involving public funds and connections to President Santiago Pena's government. The crisis began on November 3 when the central bank initiated resolution procedures against Ueno for breaching minimum solvency requirements.

This led to the suspension of bank operations and the inability of millions of customers to access their accounts. The public prosecutor has launched three investigations into suspected financial crimes, and 27 individuals have been charged. President Pena initially resigned but his resignation was not accepted by Congress, leading to impeachment proceedings.

Ueno Bank is a digital bank owned by the Grupo Vazquez, a large Paraguayan conglomerate, and has been rapidly expanding since its launch in 2021. The bank holds substantial public funds, raising concerns about the concentration of these funds in a single institution and potential conflicts of interest. The political situation is further complicated by Pena's appointment of Carlos Carvallo as Central Bank president and the potential implications of his political immunity if he were to leave office.