Paraguay’s President Pedro Alliana pledged swift government action to fully compensate customers affected by Ueno Bank’s collapse. (Foto: Instagram)
Paraguay’s new president, Pedro Alliana, said on November 6 that customers affected by the Ueno Bank crisis would be fully compensated. In his first address after taking office, he pledged immediate government action as the bank’s collapse fueled political turmoil.
Alliana said customers facing hardship because of the bank’s financial failure would not be left on their own. He also called for people with fewer resources to receive priority, ordering swift action to reimburse depositors and saying he expected results.
Alliana took office after the Senate approved the impeachment of Santiago Peña on November 6. Peña had resigned the previous day as Congress moved toward a vote. Hours after his removal, he was detained at his home on prosecutors’ orders and placed under house arrest over suspected irregularities tied to Ueno Bank. Peña denied wrongdoing and said the matter should be handled by judicial authorities.
The Paraguayan Central Bank intervened in Ueno Bank on November 3 after finding that its solvency ratio had fallen to less than half the legal minimum. The decline followed adjustments to the bank’s financial statements during a regularization process. The digital bank had about 3 million customers in a country of roughly 7 million people. After the intervention, customers could not immediately access accounts and deposits, prompting protests in Asunción and elsewhere.
The Central Bank has begun returning funds through the Deposit Guarantee Fund. The initial phase covers customers with deposits of up to 10 million guaraníes who owe no money to the bank and also hold accounts at other financial institutions. The law provides coverage of up to 228.3 million guaraníes per depositor, per institution.
The banking crisis also led to political and criminal investigations. Lawmakers accused Peña of a conflict of interest and interfering with oversight of the bank. He had been a shareholder in Grupo Vázquez, which controls Ueno Bank, until March 2025. Questions were also raised about the concentration of public and pension funds at the institution. Eight executives connected to the bank have been detained as authorities investigate suspected financial irregularities and responsibility for its condition. The Central Bank said the resolution process is intended to protect depositors and preserve financial stability, and described the incident as specific to Ueno Bank rather than a crisis affecting the country’s banking system as a whole. Alliana is expected to remain in office until August 2028, when the term ends.
