Ueno Bank crisis: Why are millions protesting as Paraguay’s president faces impeachment?

Paraguay’s opposition has launched an impeachment bid against President Santiago Pena following a banking crisis that has left nearly three million customers unable to access their money after the Central Bank took control of digital lender Ueno.

Thirty-five lawmakers submitted impeachment articles in the 80-member lower house on Wednesday (Nov 4), accusing Pena of misconduct, conflicts of interest and alleged irregularities in the handling of the bank's collapse. They have sought an extraordinary congressional session on Thursday to debate the motion.

The opposition needs at least 53 votes in the lower house for the proceedings to advance. The motion would then require approval from 30 of the 45 senators. Pena's ruling Colorado Party holds a majority in both chambers, making the outcome uncertain.

Why is Pena facing impeachment?

The controversy centres on Pena’s former association with Grupo Vazquez, the business group controlling Ueno Bank. The conservative economist, who took office in 2023, held shares in the group until March 2025.

Opposition lawmakers have accused his administration of conflicts of interest, misuse of pension funds and attempts to cover up institutional failures linked to the bank's collapse.

“Never before has anyone harmed 3 million people in a single day in the Republic of Paraguay, and you achieved it, Mr. President,” opposition lawmaker Rocío Vallejo said during a congressional session.

Depositors protest as bank remains shut

The takeover triggered protests and long queues outside bank branches in Asuncion, with customers unable to withdraw their savings.

“I lost my entire life savings,” 68-year-old depositor Marcelino Vergara told AFP.

Pena has sought to calm public anger, insisting that Paraguay’s financial system remains stable. He also enacted a law allowing depositors to access guaranteed funds, with payments expected within five days.

The crisis has also forced the resignation of Central Bank chief Carlos Carvallo. Arrest warrants were issued for eight Ueno executives, while authorities ordered their assets frozen as investigations widened.

Paraguay’s banking association has said lenders are handling an influx of customers moving their accounts from Ueno and that the wider banking system continues to operate normally.