Paraguay's Peña Resigns as Ueno Bank Freeze Hits 2.9 Million Customers
Updated
Updated · CNN · Nov 5
Paraguay's Peña Resigns as Ueno Bank Freeze Hits 2.9 Million Customers
3 articles · Updated · CNN · Nov 5
Summary
35 opposition and ruling-party dissident lawmakers pushed dereliction-of-duty charges against Santiago Peña, and he resigned as Congress debated removing him over the Ueno Bank crisis.
Ueno was shut overnight after Paraguay's central bank found its solvency ratio had fallen below 50% of the required minimum, freezing deposits and leaving millions unable to access funds.
The Chamber of Deputies then voted unanimously to trigger impeachment proceedings, while both houses prepared a joint session to decide whether to accept Peña's resignation or remove him instead.
That choice matters because an accepted resignation would grant Peña immunity and special protections, while some lawmakers are demanding jail over his alleged ties to a bank that received millions from public entities.
The scandal has shaken a country of 6.1 million that had been pitching itself as a regional financial hub after winning investment-grade status from two major rating agencies.
With millions locked out of their accounts, can Paraguay's government truly honor the deposit guarantees before panic consumes the nation?
How did a bank tied to Paraguay's President secretly gamble away millions in state pensions before regulators finally intervened?
The Ueno Bank Crisis: Inside Paraguay’s $850 Million Financial Meltdown and Presidential Downfall
Overview
Paraguay’s Ueno Bank collapsed after years of insider lending and weak oversight, draining its capital and leaving nearly 3 million depositors locked out of their accounts. The crisis triggered mass protests and a political earthquake: President Santiago Peña, who had business ties to the bank’s owners and appointed its former executive as central bank chief, faced unanimous impeachment charges and resigned. Emergency laws were rushed through to help depositors, while top bank executives were arrested. The fallout damaged Paraguay’s international credit standing and forced a rapid transfer of power, exposing deep flaws in the country’s financial and political systems.