Paraguay takes over Ueno Bank after solvency falls below legal minimum
Money Moves
About 3 million customers lost access to their accounts. The Senate removed President Santiago Peña and swore in Pedro Alliana; Jorge Schreiner now runs the central bank as prosecutors trace assets abroad.
Paraguay's Congress confirmed economist Jorge Schreiner as central bank chief on November 9, three days after the Senate removed President Santiago Peña over the Ueno Bank collapse. New President Pedro Alliana also asked every minister and senior official to resign so he could reorganize the government.
The central bank widened deposit payouts the same day, bringing the total returned to about $168 million for roughly 1.2 million savers. Prosecutors raided Ueno's brokerage arm and Peña's properties, and asked the United States, Luxembourg and Argentina for help tracing assets abroad; they are still trying to open a high-security vault found at Peña's summer home.
Why it matters
One digital bank held the savings of most Paraguayan adults; its failure tests whether deposit insurance can stop a bank run from spreading.
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Key Indicators
3,000,000
Ueno customers
About 2.94 million savers, roughly 60% of Paraguay's adults, lost access to their accounts.
60%
Share of adults affected
Ueno's customer base equaled about 60% of the adult population.
$850M
Public funds at Ueno (June)
Public institutions, including the state pension fund, held about $850 million at the bank as of June.
1.2M
Savers repaid so far
About $168 million had been returned to roughly 1.2 million savers by November 9, the central bank said.
8.9%
Share of system deposits
Ueno held 8.9% of deposits and 5.9% of loans at the end of 2025.
10 years
Maximum per charge
Prosecutors say each of the two charges against Peña carries up to 10 years in prison.
78-0
Impeachment vote
The Chamber of Deputies voted unanimously to impeach Peña minutes after he offered to resign.
$36,000
Per-account payout cap
AFP reported the guarantee fund will not cover reimbursements above this amount per account, leaving public pension money at Ueno uncertain.
$70M
Assets frozen by courts
Prosecutors obtained preventive embargoes over more than $70 million on assets of Ueno directors and its shareholder companies.
27
People charged
Prosecutors filed charges against 27 people on November 4 and say about 37 companies and 35 people have been linked to the case.
22 events
Latest: 2 days ago
Showing 8 of 22
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November 2026
Congress confirms Schreiner as central bank chief
LatestPolitics
Congress approved President Pedro Alliana's nomination of economist Jorge Schreiner to lead the Central Bank of Paraguay, replacing Carlos Carvallo. Former banking regulator Fernando Rivarola was named to the bank's board.
Alliana orders ministers to resign
Politics
New President Pedro Alliana asked ministers, secretaries and senior officials in positions of trust to step down, saying he wanted better coordination inside the government. He also announced tax relief for Ueno depositors.
Central bank widens deposit payouts
Regulation
Payouts opened to customers with deposits above $20,000, who began receiving advances, and to borrowers, whose overdue installments are deducted. About $168 million had reached roughly 1.2 million savers since Thursday.
Prosecutors seek Ueno assets abroad
Legal
The attorney general's office said it was working with authorities in Luxembourg and Argentina, and that the U.S. Justice Department offered help, to locate and repatriate assets. Prosecutors also raided Ueno's brokerage arm, where they recovered torn documents, and said they had identified about 37 companies and 35 people tied to the case.
Prosecutors search Peña's city home and Carvallo's house
Legal
Another team searched Peña's residence in Asuncion. Agents also raided a Ueno Bank office and the home of former central bank chief Carlos Carvallo, who is in pretrial detention.
Teachers march over frozen pension funds
Protest
Hundreds of teachers and public workers marched through Asuncion demanding the recovery of pension money held at Ueno, and teachers began a strike. The guarantee fund does not cover balances above $36,000 per account.
Prosecutors find vault at Peña's summer home
Legal
A search of Peña's house in San Bernardino, about 50 km from Asuncion, turned up a high-security vault that investigators could not open, prosecutor Silvia González said. They planned to return with the right equipment.
Peña charged and ordered held before trial
Legal
Prosecutors charged Peña with breach of trust and administration for personal gain. Judge Humberto Otazú ordered him held at a military facility; Peña pleaded not guilty.
Carvallo charged and ordered held
Legal
The former central bank chief, who ran Ueno until 2023, was charged with breach of trust, producing false public documents and administration for personal gain. A judge approved pretrial detention.
Central bank reports $160 million repaid
Regulation
The Central Bank of Paraguay said the equivalent of $160 million had reached nearly 1.2 million savers under the state deposit guarantee scheme.
Senate opens impeachment trial
Politics
The Senate concluded the accusatory stage and heard Peña's defense on Friday morning, then removed him from office.
Senate removes Peña; Alliana sworn in
Politics
The Senate removed Santiago Peña from office after refusing his resignation. Vice President Pedro Alliana took the oath to finish the term through August 2028.
Congress passes emergency payout law
Legislation
Depositors can collect up to 40 minimum wages within days; Peña announces his resignation.
Chamber of Deputies votes to impeach Peña
Politics
Deputies voted 78-0 to impeach President Santiago Peña minutes after he announced his resignation. Both houses declined to accept the resignation and sent the case to a Senate trial.
Attorney general orders three criminal probes
Legal
Prosecutor General Emiliano Rolón Fernández ordered investigations into the Ueno collapse, including Peña's ties to the lender and the placement of public funds.
Central bank begins deposit payouts
Regulation
The Central Bank of Paraguay started repaying depositors, beginning with accounts up to 10 million guaraníes (about $1,565).
Protests erupt; impeachment calls grow
Protest
Customers queue outside branches and lawmakers call for President Peña's impeachment.
Regulator seizes Ueno
Regulation
The app, cards and branches stop working, leaving about 3 million customers without account access.
Carvallo signs resignation
Statement
The central bank chief, who formerly ran Ueno, says he will stay on to oversee the takeover.
Central bank votes to resolve Ueno
Regulation
The board votes unanimously after Ueno's solvency ratio falls below half the legal minimum.
December 2025
Ueno holds 8.9% of deposits
Business
At the end of 2025, Ueno holds 8.9% of system deposits and 5.9% of loans.
2023
Ueno wins banking license
Business
The digital lender rebrands a decades-old finance company and begins expanding across Paraguay.
Scenarios
1
Deposit Payout Reaches Ueno Customers on Schedule
Likely
Resolves by Nov 12, 2026
Discussed by: Paraguayan Congress and the Central Bank of Paraguay
The emergency law requires the deposit guarantee fund to advance up to 40 minimum wages to each depositor within 24 hours and no later than five business days. If the central bank executes the payout, most small savers recover part of their money and pressure on the government eases.
2
Banking Stress Spreads to a Second Paraguayan Lender
Unlikely
Resolves by Feb 28, 2027
Discussed by: Reuters and financial analysts
Regulators have called Ueno an isolated case and say deposits up to the guarantee limit are covered. If withdrawals spread to other banks, the central bank would need emergency liquidity or another resolution, turning a single failure into a system-wide problem.
3
Congress Accepts Peña's Resignation and Sets Elections
Likely
Resolves by End of 2026
Discussed by: Reuters and Paraguayan political analysts
This did not happen. The Chamber of Deputies voted 78-0 to impeach Peña on November 5, and both houses declined his resignation instead of accepting it. The Senate removed him from office on November 6 and swore in Vice President Pedro Alliana, who is serving through August 2028. The scenario resolved NO.
4
Prosecutors Charge Ueno Directors Over Related-Party Lending
Possible
Resolves by May 31, 2027
Discussed by: Paraguayan prosecutors and local press
Prosecutors charged 27 people on November 4, 2026, and detained eight former Ueno executives. They have identified about 37 companies and 35 people tied to the bank and its shareholder firms, and obtained preventive embargoes over more than $70 million. The scenario resolved YES.
5
Senate Convicts Peña and Removes Him From Office
Possible
Resolves by Nov 13, 2026
Discussed by: Paraguayan senators and constitutional analysts
The Senate removed Peña from office on November 6, 2026, after the Chamber of Deputies voted 78-0 to impeach him. Vice President Pedro Alliana was sworn in the same day to finish the term through August 2028. The scenario resolved YES.
6
Peña Is Convicted in the Ueno Case
Possible
Resolves by End of 2027
Discussed by: Paraguayan prosecutors and Reuters
Peña is charged with breach of trust and administration for personal gain, each carrying up to 10 years in prison. Prosecutors allege he steered public deposits to Ueno while holding ties to its holding company until March 2025. He has pleaded not guilty.
7
Deposit Fund Repays the Remaining Ueno Savers
Likely
Resolves by Q1 2027
Discussed by: Central Bank of Paraguay and President Pedro Alliana
Nearly 1.2 million savers had been repaid by November 7, leaving roughly 1.7 million still waiting. Alliana promised full compensation with priority for the most vulnerable, but the central bank has not set a date for the rest.
8
Overseas Ueno Assets Are Traced and Repatriated
Uncertain
Resolves by May 9, 2027
Discussed by: Paraguay's Public Ministry and prosecutors
Prosecutors said they are working with Luxembourg and Argentina and have an offer of help from the U.S. Justice Department to find and repatriate assets tied to Ueno. Success would put money toward compensating savers whose balances exceed the guarantee cap.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
1 of 3
September 2007
Northern Rock bank run (2007)
British mortgage lender Northern Rock sought emergency support from the Bank of England after wholesale funding dried up. Depositors queued outside branches in the first run on a British bank since 1866.
Then
The government guaranteed deposits to stop the run and later nationalized the bank.
Now
The episode reshaped UK deposit insurance and bank resolution rules.
Why this matters now
It shows how fast a lender can fail once depositors lose confidence, and why the speed of a deposit guarantee matters.
2 of 3
December 2001
Argentina's corralito (2001)
Argentina limited cash withdrawals and froze dollar-denominated deposits to stop a bank run during its debt crisis. Protests spread and President Fernando de la Rúa resigned.
Then
Accounts stayed frozen for months and the economy collapsed into default.
Now
The freeze left lasting distrust of banks and shaped later deposit insurance debates in the region.
Why this matters now
Paraguay's rapid payout law is designed to avoid the kind of account freeze that toppled a government next door.
3 of 3
March 2013
Cyprus banking crisis (2013)
Cyprus agreed to a bailout that imposed losses on uninsured deposits over 100,000 euros at its two largest banks. Capital controls followed to stop money leaving the island.
Then
Large depositors took haircuts and banks reopened under strict limits.
Now
The case set a precedent that bank creditors, not only taxpayers, can absorb losses in a eurozone rescue.
Why this matters now
It shows the choice regulators face when a bank's capital is gone: who absorbs the loss, and how fast small savers are protected.
