The political landscape in Paraguay is experiencing heightened tension following the announcement of an investigation into President Santiago Peña’s alleged involvement in the collapse of Ueno Bank. This development comes after the Paraguayan Attorney General initiated an inquiry based on a complaint by the Central Bank of Paraguay (BCP) regarding the digital bank’s sudden insolvency. The investigation seeks to understand Peña’s role in managing the crisis and the placement of public resources in Ueno Bank.
The unraveling of Ueno Bank has prompted significant political attention. As reported, the investigation includes submissions against President Peña, dated October 22, 2025, which also implicate former officials of the BCP and other governmental bodies like the Social Security Institute and the Secretariat for the Prevention of Money Laundering. Miguel Vazquez, the former CEO of the bank, is under probe for various alleged offenses, including misconduct during the crisis and breach of trust.
The focal point of this criminal inquiry is a resolution issued by the BCP’s board, which mandated Ueno Bank’s liquidation. This move triggered widespread financial disruption, with many citizens losing access to their savings and pension funds. As a consequence, social unrest manifested in street protests demanding the reimbursement of lost funds and President Peña’s resignation.
In a bid to address the unfolding crisis, President Peña has publicly announced his willingness to cooperate with the authorities and sought a 72-hour extension to prepare his defense for a Senate trial. Although he has tendered his resignation, a lack of quorum in Parliament has kept him in office, though he faces looming impeachment proceedings.
Parallel to the domestic investigation, there is a closer examination of potential foreign bank involvement with Ueno Bank’s financial mechanics. Reports suggest that some cross-border transactions might have involved institutions operating in the broader Latin American financial network. The situation remains fluid, with prosecutors open to enlarging the scope of the inquiry if new evidence comes to light.
The financial debacle surrounding Ueno Bank serves as a stark reminder of the intricate and often opaque financial schemes that can operate within large banking entities. The unfolding case in Paraguay highlights the far-reaching consequences of such failures, both politically and socially. More about the legal proceedings and political implications can be found here.