Ueno Bank Implosion in Paraguay Ensnared President Santiago Peña

A bank’s sudden shutdown

Ueno Bank services stopped working in the early hours of Tuesday, leaving customers unable to reach their money. The bank said it had 2.9 million customers, about 60% of Paraguay’s adult population; the Central Bank counted approximately 1.8 million depositors.

Ueno began as a fintech in 2021 and became a bank in November 2023. Its growth was fueled by digital account opening, cashback offers and incentives for customers to make payments through its platform.

Authorities said almost 1.2 million customers had received advance payments from the state deposit guarantee fund by Saturday. Many customers were still waiting for funds.

Customers feel the disruption

The loss of access affected daily expenses as well as confidence in financial institutions. In downtown Asunción, café worker Elizabeth González said a customer insisted on paying cash because he no longer trusted banks.

González, 28, said the uncertainty could also worry foreign investors. Outside Congress, protesters gathered over both frozen funds and what they considered a lack of accountability. Student leader Batarram Caballero said some classmates had money tied up that they needed for bus fare and food. Elodia Saveredo, a 71-year-old who sells handicrafts online, said she joined the protest because the crisis affected the whole country.

Political fallout reaches president

The bank’s collapse was followed by the impeachment and removal of President Santiago Peña, a close ally of President Donald Trump. The allegations linked to the bank and the crisis exposed a power struggle within the ruling Colorado Party.

Hundreds gathered outside Congress on Friday as anger grew over access to money and accountability. The article identifies Peña’s removal but does not specify the allegations against him or describe the impeachment proceedings in detail.