Paraguay’s Ueno bank collapse topples president and shatters ‘Dubai of South America’ myth

Paraguay's Ueno bank collapse triggered a political crisis that ousted President Santiago Peña, who was placed under house arrest and charged with corruption-related crimes after the bank failed on Nov. 3, 2026. The digital lender, serving nearly 3 million customers, was placed into resolution after its solvency ratio fell below legal minimums, exposing $146 million in questionable loans and close ties between political elites and regulators. Peña resigned Nov. 5 and was succeeded by Vice President Pedro Alliana. The crisis has sparked protests and raised concerns about regulatory capture, with public funds totaling $850 million at risk. It challenges Paraguay's reputation as a stable "Dubai of South America," though the ruling Colorado Party has contained fallout by sacrificing key figures.