Paraguay's Ueno Bank collapse topples President Peña and freezes millions in savings

The collapse of Paraguay's Ueno Bank has triggered a political crisis, leading to the impeachment of President Santiago Peña and the freezing of millions of citizens' savings. The bank's failure has caused significant economic disruption and raised serious questions about institutional oversight. Ueno, a digital bank founded in 2021, had amassed roughly three million customers and managed about $850 million in public funds, including $380 million from the social security institute. President Peña, who held a stake in the bank's parent group, is now under house arrest, and central bank chief Carlos Carvallo has been arrested. The crisis has spread regionally, with layoffs in Argentina and investor concerns in Brazil. The new president, Pedro Aliana, has promised full compensation, though deposit guarantees cover only up to a certain limit, leaving the recovery of larger public funds uncertain.