Angry protests erupt across Paraguay after Ueno Bank is shut down overnight over a solvency crisis, freezing accounts for 60% of the adult population
On the night of 3 November 2026 in Asunción, the Central Bank of Paraguay placed Ueno Bank into resolution proceedings after its solvency ratio collapsed below half the legal minimum, abruptly shutting down the digital lender and freezing accounts for an estimated 2.8 to 3 million customers, roughly 60 per cent of the country’s adult population.
The intervention, announced in the early hours, deactivated the bank’s app, cards and transfer services.
Customers woke to find themselves locked out of their money, including many who relied on the institution for everyday payments and pension deposits.
Street protests quickly spread in the capital and other cities, with demonstrators gathering outside branches and near the National Congress and presidential residence, demanding the return of their savings and calling for the impeachment of President Santiago Peña.
One protester told local media: “This is a disaster for our families and our future.” Another organiser, Jorge Ramírez, said simply: “Return our money first.”
Central Bank board member Liana Caballero confirmed that all services had been suspended to protect depositors while administrators examined the bank’s assets and liabilities.
The crisis has exposed deep political sensitivities. President Peña previously held business ties to Grupo Vázquez, the conglomerate that owned Ueno, and Central Bank president Carlos Carvallo, a former senior figure at the bank, resigned at the president’s request amid conflict-of-interest accusations.
Prosecutors ordered the arrest of eight executives, including key figures from the ownership group, as investigations into alleged irregularities in related-party lending continue. Approximately 380 million dollars in public pension and healthcare funds held at the bank are also at risk.
In a video message, President Peña sought to calm public fears, pledging to introduce legislation “that will return to every saver what they are entitled to as quickly as possible.”
Deposit insurance covers savings up to the equivalent of roughly 38,200 dollars per person.
While the failure has not yet spread to other banks, the sudden overnight closure of an institution used by so many has severely shaken confidence and placed intense pressure on both the government and the financial regulator.
The coming days will determine how quickly funds can be returned and whether the political fallout deepens further.
