Protests Erupt In Paraguay As Lawmakers Move To Impeach President Over Bank Collapse Affecting 3 Million Customers
Protests have erupted across Paraguay following the takeover of Ueno Bank, the country’s largest digital lender, by the Central Bank over a severe financial crisis that has left about 3 million customers unable to access their money.
The Central Bank reportedly intervened after discovering that the lender had breached minimum solvency requirements, triggering the suspension of its mobile banking application, credit cards and money transfer services.
The development has left millions of customers, representing nearly 60 per cent of Paraguay’s adult population, struggling to access their savings and pension funds.
The crisis has also triggered political turmoil, forcing Central Bank President Carlos Carvallo to resign, while arrest warrants were issued for eight senior executives of the bank.
According to reports, the executives later surrendered to authorities, while a court ordered their assets frozen as investigations into the bank’s collapse intensified.
Meanwhile, opposition lawmakers have begun moves to impeach President Santiago Peña over his administration’s handling of the crisis.
Thirty-five lawmakers in the 80-member lower house submitted impeachment articles and requested an extraordinary congressional session to debate the president’s removal.
They accused Peña of conflicts of interest, misuse of pension funds and attempts to cover up institutional failures surrounding the bank’s collapse.
Opposition lawmaker Rocío Vallejo criticised the president during a congressional session, saying: “Never before has anyone harmed 3 million people in a single day in the Republic of Paraguay, and you achieved it, Mr. President.”
Peña, who assumed office in 2023, was previously a shareholder in Grupo Vázquez, the company controlling Ueno Bank, until March 2025.
Although the opposition currently lacks the two-thirds majority required to advance impeachment proceedings, it has reportedly secured support from some members of the ruling Colorado Party.
The crisis has also raised concerns about Paraguay’s financial sector, following reported outages affecting several other banking applications.
However, the Association of Banks of Paraguay has assured customers that the country’s banking system remains operational despite the growing uncertainty.
