Ueno Bank’s shutdown has left customers unable to access their funds and sparked protests in Paraguay. (Foto: Instagram)
Paraguay’s Ueno Bank crisis has become a political and economic test for President Santiago Peña, following the digital bank’s shutdown and the suspension of customer access to funds. The Central Bank of Paraguay ordered the bank’s resolution on November 3, citing insolvency, and the fallout prompted the resignation of the central bank’s president and two board members. Opposition lawmakers have also sought Peña’s impeachment.
The central bank suspended Ueno’s operations and began a resolution process after determining that the bank could not meet its obligations. Paraguay’s Public Prosecutor’s Office requested a criminal investigation and asked for the arrest of two bank officials. The inquiry concerns suspicions about the institution’s management and loans made to companies linked to its controlling group. Those loans may have weakened the bank’s assets, according to the allegations under investigation.
Carlos Carvallo, who had led the Central Bank of Paraguay since 2023, resigned. Carmen Marín and Marco Aurelio González, two other board members, left their posts the following day. Before taking over as head of the central bank, Carvallo had served as Ueno Bank’s president. Peña, an economist, was a shareholder in Ueno Holding, a company connected to the bank’s controlling group, until March 2025.
The opposition’s impeachment request, known in Paraguay as a political trial, cites Peña’s connection to the financial institution and could lead to his removal from office. The governing party’s political base also joined the request, according to the report. The crisis has put pressure on the government as customers and bank employees have taken to the streets to protest.
Ueno Bank had more than 3 million customers and served about 40% of Paraguay’s population, including Brazilian customers. After the central bank took control, customers were unable to access their money. Demonstrations took place in downtown Asunción and outside Peña’s official residence, where customers demanded the full return of their funds. On Wednesday, November 4, Peña said the central bank would compensate customers affected by the bank’s dissolution.
The central bank said it would advance payments under the Deposit Guarantee Fund, with disbursements expected to begin that week. Eligible customers may receive up to 40 minimum monthly wages. Payments are to be made through other financial institutions; customers without another bank account will be given a temporary account at a different bank. The central bank also said Ueno employees’ rights and pay would be protected, with payments expected in the coming days. Bank employees have also protested over the crisis.
