Paraguay’s President Impeached After Ueno Bank Collapse Freezes Millions of Accounts

Paraguay's President Santiago Peña was impeached and placed under house arrest on Friday following the collapse of Ueno Bank, which froze the accounts of nearly 3 million Paraguayans, about 60% of the adult population. The crisis has brought the country's banking system to the brink of collapse. Peña, who resigned the day before in a failed attempt to retain senatorial immunity, faces criminal proceedings over alleged favoritism towards Ueno, a digital lender that expanded rapidly after he took office in 2023. The bank received state and pension funds estimated at $800 million to $860 million, and its collapse has caused business sales to fall by up to 80% this week. The central bank has begun paying customers with deposits up to $1,565, while a guarantee fund covers deposits up to $38,000 for most individual account holders. Eight senior Ueno executives have been arrested, and 300 media workers have had salaries suspended, with 32,000 pensioners left without payments.