Millions of customers without access to their accounts. The president of Paraguay resigns

In a country with approximately 6.5 million inhabitants, the problems affected nearly 3 million Ueno Bank customers. The institution was placed under receivership and the central bank began liquidation procedures.

Paraguay's central bank intervened after detecting serious solvency problems with Ueno Bank. The institution's capital adequacy ratio fell below 50 percent.

From Tuesday, customers cannot use the bank's applications, cards or other services. Protesters appeared in front of branches in Asunción and other cities, fearing for their savings.

Ueno managed about $850 million in public funds, including Social Security Fund money for pensions and health care.

The crisis also hit trade. The association of importers and traders warned that sales in large retail chains could have fallen by 35%. due to customers' limited access to money.

Eight senior Ueno Bank managers were detained, including CEO Miguel Vázquez. Investigators are examining the circumstances of the financial collapse of the institution.

President Peña, an economist elected to office in 2023, has come under intense political pressure because of his past business ties with the group that controls Ueno. Peña was a shareholder of Grupo Vázquez, the bank's owner, until March 2025.

Parliamentarians accused him of conflict of interest, misuse of pension funds and concealing information about the bank's problems. Peña has repeatedly denied these accusations. He argued that the case began as a technical and regulatory problem, and any violations should be clarified by the courts.

JPMorgan analysts said in a note to clients that the Ueno case "quickly acquired a political dimension." In their opinion, the risk for the entire financial system will depend on the speed and transparency of the authorities' actions.

The crisis could also damage Paraguay's reputation as a stable destination for foreign investment, especially capital flowing from neighboring Brazil.