Ueno Bank Crisis Freezes Accounts and Topples Paraguayan Government

The Central Bank of Paraguay has intervened in Ueno Bank after discovering that the institution's solvency ratio fell to less than half of the required minimum. The measure resulted in an immediate shutdown of all digital and physical services. This prevented three million customers from accessing their savings. The bank held accounts for approximately 60% of the country's adult population.

The crisis hit Brazilians living in Paraguay for study or business particularly hard. Many used the institution due to its simple account opening process and lack of red tape. The asset freeze interrupted rent payments and basic expenses for thousands of immigrants and local small business owners.

The financial impact extends to the public sector because the bank managed over 800 million dollars in state funds. Of this amount, about 380 million dollars belonged to the Social Security Institute of Paraguay. The local Deposit Guarantee Fund covers amounts up to 228 million guaranis per person. However, coverage for larger sums remains uncertain.

The institution's collapse triggered severe political instability that led to the resignation of President Santiago Peña. The government was facing an impeachment process over accusations of conflicts of interest and the manipulation of pension funds. Executives linked to the Vázquez Group, which controls the bank, were also detained by local authorities.