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Economy Paraguay

Ueno Bank collapse and Paraguay's change of president

Paraguay's central bank took over Ueno Bank on Nov 3, freezing the accounts of about 3 million customers, and on Nov 6 Congress removed President Santiago Peña by impeachment instead of accepting his resignation. On Nov 10 his successor, Pedro Alliana, called recovering pension money held at Ueno a priority.

Confidence: high. The takeover, the frozen accounts and Peña's removal by the Senate on Nov 6 are reported the same way by AP, Reuters, AFP, Al Jazeera, BBC News Mundo and Paraguayan papers. Figures vary by source: the state pension fund's money at Ueno is put at $355 million (lawmakers and prosecutors, via AP and Al Jazeera), $380 million (AP) or $516 million including operating accounts (the institute's investments director, via ABC Color), and the criminal charges against Peña are allegations he denies. · Updated 11 Nov 2026, 2pm ET

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Why it matters: Ueno says it had about 3 million customers, around 60% of Paraguay's adults, and it managed $800 million to $850 million in public money, including about $380 million from the state pension and health fund, when regulators took it over. source

What's happening

Paraguay's central bank board voted unanimously on Nov 2 to place Ueno Bank, a fast-growing digital lender owned by Grupo Vázquez, into resolution after its solvency ratio fell below half the legal minimum; the takeover was announced early on Nov 3, and customers lost access to their accounts, cards and app. Ueno says it had about 3 million customers, roughly 60% of the country's adults, and AP reports it managed $800 million to $850 million in public money, including about $380 million from the state pension and health fund. Regulators had found about $146 million in loans to companies tied to the owners, some above legal limits (Al Jazeera, with AP). Peña had been a business partner in Grupo Vázquez until March 2025 and in 2023 named Carlos Carvallo, who had led the finance company that became Ueno, as central bank chief; Carvallo has since resigned. On Nov 5 Peña announced his resignation in a video, but the Chamber of Deputies voted 78-0 to impeach him minutes later and a joint session called to accept the resignation broke down without a quorum (Buenos Aires Herald). On Nov 6 the Senate removed him for misconduct in office, with all 44 senators present voting in favor (AP), which also ended his claim to a lifetime Senate seat and the immunity that comes with it. Alliana, his vice president, was sworn in that evening to serve until August 2028; AP reports Alliana is also under investigation in connection with the bank. Peña denies wrongdoing. On Nov 7 a judge charged him with breach of trust and administration for personal gain and ordered him held in pretrial detention at a military unit (Al Jazeera; BBC News Mundo). Prosecutors have separately charged 27 people linked to the bank, including its founder.

What changed recently

Key figures

about $516 million, including about $359 million in pension and contingency reservesSocial Security Institute (IPS) money held at UenoIPS investments director Hugo Díaz, in an interview with ABC Color · 2026-11-09 · source
about 1.74 million, totaling $330 millionDepositors paid from the deposit guarantee fund so farEuronews, reporting payouts under Paraguay's emergency deposit law · 2026-11-10 · source
all 44 senators present in favorSenate vote to remove Peña for misconduct in officeAP · 2026-11-06 · source

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