Paraguay's Senate removes President Santiago Peña after Ueno Bank collapse

How the bank collapse unfolded

Paraguay's central bank intervened in Ueno Bank on 3 November 2026 over solvency problems, leaving about three million customers without access to their money. The digital lender was founded in 2021 and offered cashback rewards and credit cards to people who lacked access to traditional banks. By June 2026 it had 2.9 million customers, and its owner had argued it was on track to become Paraguay's first unicorn. Population figures vary across outlets, with one report citing 6.5 million Paraguayans and another 6.1 million, so the share of customers depends on the source.

Peña resigns and is removed

Prosecutors accuse President Santiago Peña, 47, who took office in August 2023, of mismanagement and of administering funds for his own benefit. They say he took part in or influenced decisions that kept large public funds at Ueno Bank despite alleged conflicts of interest, since he had been a partner and shareholder in the company that created the bank. He kept a stake in that company until a year before the crisis. Before the presidency he worked as an economist at the central bank and served as finance minister. As his political support eroded, including from his mentor, former president Horacio Cartes, who leads the Colorado Party, Peña submitted his resignation. Congress refused it, a move that would have let him become a life senator with parliamentary immunity, and senators then unanimously approved his removal. Peña was detained and is now under house arrest.

Savers and the emergency repayments

On Wednesday, 11 November, the central bank said it had partially repaid savers, and board member Pedro Acosta told a press conference that the process was nearly complete for eligible depositors.

“With the amount we are going to process today, we would already be reaching 100% of the beneficiaries of this guarantee.”

Partial repayments went to 1,812,348 savers, totalling about $643 million out of roughly $2.8 billion the bank held when it was intervened. An emergency law passed by Congress the previous week allowed advance payments of up to about $19,000 per depositor within one week, a window that closed on Wednesday. The Deposit Guarantee Fund protects up to about $37,000 per saver and bank, so depositors with larger balances must wait for the transfer of Ueno's assets and liabilities to other financial institutions, a process Acosta said starts next week. He hopes it will bring news by the end of November. Directors, shareholders and mutual fund investors are excluded from the guarantee, and authorities plan to return pension funds, which exceed $500 million, on a priority basis. About 29% of Ueno's deposits belonged to the public sector, according to June data from the bank.

Ueno Bank funds at intervention (approx.)2,800

Repaid to savers so far (approx.)643

Ueno Bank funds at intervention (approx.)

2800 USD million

Repaid to savers so far (approx.)

643 USD million

Data from the article text

Rating and football fallout

Fitch Ratings placed Paraguay's credit rating on watch for a possible downgrade on Wednesday, 11 November, citing risks to public finances and the economy from the banking crisis. The country had marketed itself on macroeconomic stability, fiscal discipline and a business-friendly climate. The football sector has also been hit, as at least ten national team players had accounts at Ueno Bank, with an estimated loss of about 8.99 million euros. Their lawyer, Rodrigo Codas, is preparing a class action against the bank and represents 14 other footballers. He said the group does not rule out suing the Paraguayan government if the losses are not repaid, and that players may refuse to represent the national team until the matter is resolved. The bank had been the main sponsor of the Paraguayan Football Association and the Paraguayan Olympic Committee. Codas said former CEO Federico Miguel Vázquez Villasanti, known as Miguel Vázquez, was often present with the squad and was arrested in early November as part of the investigation.

What comes next

The transfer of Ueno's assets, Fitch's rating review and the case against Peña are all still open. Authorities are being accused of having turned a blind eye while the bank made a number of large loans. Depositors with balances above the advance payment are waiting for the transfer to proceed. Investors in mutual funds, which the guarantee does not cover, are also waiting for clarity on how they will recover their money.