Paraguay Bank Collapse Triggers Impeachment Moves Against President

Paraguay is facing political turmoil after regulators took control of Ueno Bank over serious financial weaknesses. The bank reportedly serves about three million customers, and its shutdown has left customers unable to access their accounts. It also held hundreds of millions of dollars in public funds, including about $380 million belonging to the country’s Social Security Institute. Opposition lawmakers have accused President Santiago Peña of conflicts of interest and regulatory failures, citing his past business connections with the bank’s parent company. Thirty-five lawmakers signed impeachment articles against Peña and requested a special congressional session. The opposition needs at least 53 votes in the 80-member lower house to advance the proceedings. It has also initiated moves against Vice-President Pedro Alliana. Central Bank President Carlos Carvallo has resigned, while protests have erupted in the capital. Eight Ueno executives have been detained as part of an investigation into suspected financial misconduct. Authorities say eligible customers will be reimbursed under the deposit protection scheme, which covers up to about $38,000 per customer. The account reflects reporting available as of November 5, 2026.

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