‘Very strange, very sad’: Paraguay bank collapse fells a presidency and leaves millions broke
Santiago Peña’s links to Ueno Bank scrutinized after crisis led to his house arrest and froze millions of bank accounts Pedro Volpe had just woken up last Tuesday when he saw a message from a friend asking whether his bank account was down, too. It was a day after payday, and Volpe, 50, a writer and lawyer, opened his banking app and panicked: he could not even see his balance. Continue reading...
Santiago Peña, Paraguay's former president, faced impeachment and house arrest after a digital bank, Ueno Bank, collapsed. Nearly 3 million Paraguayans, around 60% of the adult population, had their bank accounts frozen overnight after the central bank ordered Ueno into resolution due to insolvency. Peña's impeachment followed allegations of favoritism towards Ueno, which had become a favorite bank of the population due to its user-friendly services and generous returns.
The bank's popularity led to a significant drop in sales for businesses, and even media outlets owned by the same financial group as Ueno had their operations suspended. Pensioners relying on public pension funds invested in Ueno found themselves without payments. Peña, who had invested in Ueno's parent company, defended his actions but faced criminal proceedings for alleged illicit enrichment, money laundering, and influence peddling.
The bank's collapse has left millions of Paraguayans struggling to make ends meet, with some unable to afford basic necessities.
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