How a bank collapse left millions in limbo and toppled Paraguay's president

The collapse of the digital bank Ueno over a five-day period has frozen the savings of nearly 3 million customers in Paraguay, according to The Economic Times and New Straits Times. The bank had previously been viewed as a success story that provided many of the country's 6.5 million people with their first bank accounts. NPR reports that the collapse exposed a web of political and financial ties.

Following the bank's failure, President Santiago Pena was impeached on Friday evening after attempting to resign. Vice President Pedro Alliana has been sworn in as his replacement, according to The Economic Times and New Straits Times. Japan Times notes that until March 2025, Pena had been a business partner of the group that owns Ueno Bank.

Authorities arrested Pena, an economist and close ally of U.S. President Donald Trump, and a judge ordered him held in pretrial detention at a military facility, according to The Economic Times and New Straits Times. Prosecutors have charged him with breach of trust and administration for personal gain, and Hindustan Times - World News reports that he could face up to 20 years in prison if found guilty. Pena's attorney, Ricardo Preda, stated that his client is pleading not guilty.

Brief written by urgent.news from NPR, Japan Times, The Economic Times, New Straits Times, Hindustan Times - World News — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.