3 Million Locked Out as Paraguay's Ueno Bank Collapse Deepens

Paraguay's Ueno Bank has frozen accounts for nearly 3 million customers — roughly 60 percent of the country's adult population — after the central bank forced the digital lender into resolution on Monday, according to Al Jazeera. President Santiago Pena is now facing impeachment proceedings tied to his past ownership stake in the bank's parent company.

How many customers are affected?

Ueno Bank reported roughly 3 million customers before the freeze, Al Jazeera reported, citing the bank's own figures. Customers cannot withdraw cash, make digital payments, or use their bank cards while the bank remains in resolution, a status the Central Bank of Paraguay can impose as its strongest step short of full liquidation.

Why did regulators step in?

The central bank moved after finding that Ueno's solvency ratio — a measure of capital against risk-weighted assets — had fallen below half of the legal requirement, according to Al Jazeera. Resolution lets regulators shift a failing bank's deposits to other institutions before liquidating what remains, but it has left depositors, retirees, and workers unable to recover savings or wages in the meantime.

What is Pena's connection to the bank?

Pena held a stake in Grupo Vazquez, Ueno's parent company, until March 2025, Al Jazeera reported. The former International Monetary Fund economist announced his resignation on Thursday, but lawmakers filed impeachment charges against him anyway. Pena asked for a 72-hour extension to prepare his defense, telling colleagues he had been given less than 12 hours to respond to "an accusatory writ and about 300 pages of attachments," adding: "That is not due process." The Senate convened a rare session Friday and voted to proceed with efforts to remove him from office, according to the report.

How did Ueno Bank grow so large?

Founded in 1976, Ueno operated as a small financial firm for decades before receiving a full banking license in 2023. Within five years it rebranded into a household name, building a network of more than 70 branches and offering cashback incentives on groceries, Al Jazeera reported. The bank also sponsored Paraguay's national football team and had its name displayed across the country's main stadium.

Who else is affected by the freeze?

The Central Bank of Paraguay says Ueno managed $800m in public funds, including about $380m invested by the country's state pension and health fund, according to data cited by Al Jazeera. Protesters have marched on Congress over the lost access to savings. "Santiago Pena and the Colorado Party have stolen all our savings," protester Luis Pineda told Al Jazeera during a Wednesday demonstration, referencing the party that has governed Paraguay for most of the past seven decades. "We are fed up with 70 years of plunder," he added.

By the numbers

• 3 million — customers affected by the Ueno Bank freeze, about 60 percent of Paraguay's adult population
• $800m — public funds managed by Ueno Bank, per the Central Bank of Paraguay
• $380m — of that total invested by the state pension and health fund
• 70+ — bank branches Ueno built after its 2023 licensing

For related coverage of regional fiscal pressure, see HTT News' report on Israel's fiscal reckoning amid a Trump aid threat.