President Santiago Peña remains in office after Paraguay’s parliament failed to finalize his resignation due to a lack of quorum, even as the Chamber of Deputies unanimously moved to initiate impeachment proceedings. The political paralysis follows the collapse of Ueno Bank, an institution that served 60 percent of the nation’s adult population and has left nearly three million people without access to their accounts, according to Buenosairesherald.
A Social Emergency in Asunción
The digital lender’s failure has pushed the country into a social emergency. In the capital, Asunción, protesters are demanding both the return of their funds and accountability from the government. The situation has reached a critical point where citizens are unable to pay for rent, utilities, or even basic food, effectively freezing the daily lives of many.
Central Bank Intervenes After Ueno Bank Solvency Indicator Plummets
On November 2, the Central Bank of Paraguay intervened, launching a recovery process after Ueno Bank’s solvency indicator plummeted below half the legally required minimum. The Central Bank’s report concluded the lender no longer possessed the capital protection necessary to cover its risks and obligations. The scale of the fallout is immense, as the bank was managing roughly $850 million in state funds.
Conflicts of Interest and Resignations
The scandal has drawn a direct line to President Peña, whose past business ties to the bank’s ownership structure have fueled allegations of conflict of interest. While Peña denies any illegal conduct, he announced his resignation on Thursday, citing a need to preserve stability. The Chamber of Deputies has backed impeachment, though the Senate has yet to determine its path forward.
Scrutiny has also intensified regarding the appointment of central bank head Carlos Carvallo. Both the President and Carvallo share histories with the institution: Peña was a shareholder in Ueno Holding until 2025, and Carvallo held previous professional ties to the lender. Peña announced on X that he had requested the resignation of the president of the Central Bank.
Deposit Insurance Limits Protect Savings up to Certain Thresholds
The national deposit insurance system provides a theoretical guarantee for savings up to approximately US$38,000—or 75 minimum monthly salaries—per depositor. For those with balances exceeding that threshold, the recovery of assets remains tethered to the bank’s restructuring and the availability of remaining funds.
| Entity/Metric | Details |
|---|---|
| Total public funds managed by Ueno | Approximately $850 million |
| Guaranteed deposit limit per person | Approximately US$38,000 |
| Guaranteed limit in monthly wages | 75 minimum monthly salaries |
| Initial emergency payout limit | Not specified |