Paraguay's Ueno Bank Collapse: Paraguay's President Santiago Pena resigned on Thursday (November 05, 2026). It is being told that due to a banking crisis, almost half of the country's population is unable to access their money, however, Congress has stopped his resignation for the time being and has started the process of impeachment against him. This means that he will remain in his post for some time. There itself. Demonstrators protest near the Paraguayan Congress after lawmakers met to discuss the resignation of President Santiago Pena and consider the impeachment process against him.
'UENO' (officially written with a lowercase 'u') is a major commercial bank. The bank crisis has created a rift within Pena's Colorado Party (which has been in power for a long time), with party members themselves turning against the 47-year-old leader. These developments are a big blow for former IMF (International Monetary Fund) economist Pena. He had the support of the country's most influential politicians and just weeks ago was welcomed in Washington as a key ally of the Donald Trump administration.
About 'ueno'
It is a digital bank that grew from a small fintech business to a medium-sized lender in Paraguay. After receiving a banking license in 2023, 'ueno' quickly became a well-known name throughout Paraguay. The bank attracted customers by offering attractive cashback offers on grocery purchases and expanded to more than 70 locations. It also became a sponsor of the Paraguay national football team and its name is displayed on the country's main stadium.
After this, till June this year, according to the company, it had about 30 lakh customers in this country with a population of 65 lakh. It was also managing about $850 million of public money, including money from government institutions and pension institutions. This rapid growth made Ueno one of Paraguay's foremost financial success stories. However, in recent months the bank has come under regulatory scrutiny. He was accused of giving excessive loans to companies linked to his main shareholder, Grupo Vazquez.
How did this crisis arise?
The Central Bank of Paraguay intervened when it discovered that Ueno had failed to meet minimum solvency (financial stability) requirements. Banks are required to maintain certain financial reserves so that they can meet their responsibilities, such as returning customer deposits. On Tuesday the Central Bank took control of 'Ueno' into its hands. He said that this step was necessary to protect depositors and maintain the stability of the financial system. Authorities began arrangements to transfer refundable deposits and assets to other banks before selling off the remaining assets. Arrest warrants have also been issued against eight senior officials of 'Ueno'.
Transfer services stopped
Bank president Miguel Vazquez surrendered to the police. Meanwhile, Central Bank President Carlos Carvalho resigned from his post at the request of Pena (President). The bank's app, card and transfer services stopped working and its branches were also closed. Frustrated customers stood in queues outside to withdraw their money. On Wednesday, there was a competition to open accounts in other banks, due to which their mobile apps crashed, further increasing the concern of the people.
5 days time to give compensation
Officials have appealed to the people to remain calm. Under a law passed by Congress on Wednesday, a state guarantee fund must compensate affected depositors within five working days. Payments began processing Thursday, starting with small accounts with amounts up to about $1,600. Meanwhile, young workers wearing 'Ueno' uniforms burned their credit cards outside the Labor Ministry on Thursday and raised slogans against Pena. They were demanding severance payments and outstanding salaries. Even the resignation of the President did not reduce his anger.
Also read: Khari Baoli: How a salty 'Baoli' was transformed into sweetness, what is its special connection with Diwali festival?
Also read: Uttarakhand Crime: Why did the girl go 300km away from home? The secret of father's 'acts' in a closed room revealed during interrogation
Also read: US Midterm Elections 2026: Can Donald Trump lose the post of President? Every corruption right from son's marriage will be investigated!
Also read: He himself ruined 'Bibi' by drowning, Donald Trump will get another bad news in 2 days!
Also read: CBSE Board Exam 2027: Schedule of practical examination released for schools in winter areas, see important dates.
The post Paraguay's Ueno Bank Collapse: Digital bank scam in Paraguay, money of half the people of the country stuck appeared first on Tezzbuzz.