Ueno Bank Collapse Topples Paraguayan Presidency

Paraguay's banking system has entered a deep crisis following the liquidation of Ueno Bank. The digital bank, which grew rapidly in recent years, was declared insolvent by the country's Central Bank.

Approximately three million people had their accounts frozen suddenly. This figure represents about 60% of the Paraguayan adult population that relied on the institution for basic financial transactions.

President Santiago Peña was impeached and placed under house arrest. The local Public Prosecutor's Office accuses the former leader of breach of trust and mismanagement for personal gain in favor of the bank.

Investigations indicate that Ueno Bank received preferential treatment during Peña's administration, which began in 2023. The institution attracted clients with investment returns higher than those offered by competitors in the regional market.

The former president lost his privileged status after being removed from office by lawmakers. He will face criminal proceedings in common courts while the country grapples with popular protests and economic instability.