Ueno Bank depositors took to the streets of the Paraguayan capital to demand the impeachment of President Santiago Pena
Mass rallies over the collapse of major lender Ueno Bank escalated into clashes on Wednesday in the Paraguayan capital of Asuncion, after depositors and other demonstrators took to the streets demanding the return of their frozen savings and the impeachment of the country’s president, Santiago Pena.
Paraguay’s central bank placed Ueno Bank under external administration earlier this week after its capital ratio dropped below half of the legally required minimum. The regulator said the move was intended to protect depositors and preserve financial stability.
The bank has nearly 3 million customers in a country with a population of around 7 million, leaving a significant share of the population unable to access their accounts. According to the Associated Press, Ueno holds an estimated $800-850 million in public funds, including roughly $380 million linked to Paraguay’s state pension and health fund, adding to the political stakes of the crisis.
Videos circulating on social media show hundreds of people taking to the streets, demanding transparency over the management of funds and questioning the actions of the financial authorities. Local media reported that police used rubber bullets, pepper spray, tear gas, and water cannons to disperse demonstrators central Asuncion, as protesters demanded the return of their savings and accountability for the banking crisis.
On Wednesday, President Pena sought to reassure the public, insisting that Paraguay’s financial system remained strong and calling for calm amid the uncertainty. He said he had met with the presidents of both chambers of Congress to advance legislation aimed at returning depositors’ money as quickly as possible. The measure will provide coverage for 98% of the affected bank’s depositors, according to the head of state, who described it as a concrete step toward ensuring that savers recover their funds.
The banking crisis has, however, opened a new political front for the government, with Pena facing scrutiny over his former business ties to Grupo Vazquez, the holding company that controls Ueno Bank. The president held shares in the group until March 2025.
Opposition lawmakers have accused Pena of conflicts of interest, misuse of pension funds, and institutional cover-ups related to the bank’s operations and the handling of public money.
On Wednesday, thirty-five lawmakers submitted impeachment articles against the president in the 80-seat lower house and asked congressional leaders to convene an extraordinary session to debate his future. The opposition is seeking to advance the removal proceedings, although it lacks the two-thirds majority required for the motion to pass the lower house. Pena has not publicly addressed the impeachment push.
