Published Wednesday, 4 November, 1:30 p.m. ET · Source: Paraguay’s central bank, prosecutors, Congress and government statements
A bank run without a bank has put Paraguay’s president, Santiago Peña, on the defensive. Savers who found their cards dead on Tuesday took to the streets of Asunción, the capital, and opposition lawmakers began moving to impeach him, a vote in Congress to remove a president.
The trigger was the central bank’s decision to shut ueno, a digital bank with about 3 million customers in a country of about 6.1 million people at the 2022 census. As we reported on Tuesday 3 November, the bank was placed in resolution, a legal process in which the central bank takes control, suspends services and freezes customer accounts.
Why Are Savers Angry at the President?
Crowds of depositors and retirees protested on Tuesday, demanding their money back. Some also demanded that Peña answer for the bank’s collapse.
Their anger has a history. Peña, a conservative who took office in 2023, held shares in the group behind ueno until 2025.
Carlos Carvallo, whom Peña named central bank president in 2023, had previously run Financiera ueno, the finance company from which the bank grew. Carvallo resigned on Tuesday but stays on while the process runs.
Ueno also held hundreds of millions of dollars of public money, including deposits from the state pension fund, the Instituto de Previsión Social (IPS). Opposition senator Rafael Filizzola says that makes the president’s link to the case direct.
How Serious Is the Impeachment Push?
Opposition lawmakers, who began the push on Tuesday, seek impeachment of Peña and Vice President Pedro Alliana for poor performance of their duties. The governing side says there are no grounds to remove either man.
The opposition needs a majority in Congress, and no date for a vote has been set.
What Has Happened to the Bank’s Bosses?
Eight ueno directors and officials were detained, including founder Federico Vázquez and chairman Juan Manuel Gustale. Prosecutors are investigating possible irregularities at the bank.
The central bank said ueno’s solvency index, a measure of capital against risk, fell below half the required minimum. That pushed it to act on 3 November, five days after the bank unveiled a capital plan on 29 October, after weeks of Senate questions.
Our earlier report covers the US$100 million capital plan.
What Is Peña Offering Savers?
Peña has announced emergency measures and a bill to speed up refunds, and he met the heads of both chambers of Congress to push it through. He also nominated Raúl Vera Bogado to lead the central bank, which Congress must approve.
Savers are already covered up to about US$38,000 each by a state deposit fund.
What It Means for US Readers
Holders of ueno’s US$350 million of dollar bonds face the biggest uncertainty, because resolution rules decide who is paid first. Investors in Paraguayan sovereign debt will watch whether a political crisis delays any fix.
In our analysis, banks with clean books and no ties to the government may gain deposits, while confidence in the central bank is the main loser. The next signals are the start of payouts, the new central bank chief and any impeachment vote.
What Is Not Known
It is not known how much money sits in ueno or what the rescue will cost. Peña said payments would begin this week, while the central bank had earlier said about 15 days.
Nor is it clear whether the impeachment drive has enough votes.
More: Paraguay news in English, every day from The Rio Times.
Frequently Asked Questions
Why are Paraguayans protesting?
Savers lost access to their money when the central bank shut ueno bank on 3 November 2026. Protesters also blame President Santiago Peña, who owned shares in the bank’s parent group until 2025.
Can Paraguay’s president be removed?
Opposition lawmakers are pushing to start impeachment against Peña and Vice President Pedro Alliana. The governing side says there are no grounds, and no vote has been scheduled.
Sources: Banco Central del Paraguay statements, Paraguayan prosecutors and Congress, government announcements, 3 and 4 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI ·