Ueno Bank's Collapse Topples Paraguay's President Santiago Peña

The collapse of Ueno Bank, a fast-growing digital bank with nearly three million clients and ties to President Santiago Peña, has triggered his impeachment and the fall of Paraguay's government amid nationwide protests. Peña resigned Thursday, but Congress rejected it and voted to proceed with a political trial ending in his removal. Ueno Bank, owned by the powerful Grupo Vázquez conglomerate, expanded rapidly after becoming a digital bank in 2023, amassing 2.9 million clients and about $850 million in public deposits. The Central Bank intervened on November 3 after detecting critical insolvency, with investigations focusing on possible illegal loans to Grupo Vázquez-linked companies and eight executives detained. Depositors face uncertainty, though a guarantee fund covers up to $38,000 per person, protecting 97% of savers. The social security institute IPS had $380 million in the bank, and Vice President Pedro Alliana is poised to succeed Peña if convicted.