The Central Bank of Paraguay (BCP) launched a resolution procedure for Ueno Bank, one of the country's largest banks, on November 2, 2026, after finding that its solvency ratio had fallen to 5.56%, less than half the required 12%. The measure, announced in the early hours of Tuesday the 3rd, cut off 2,941,996 customers from their accounts, in a country of about 6.1 million people, and froze some US$850 million in public funds, according to La Gaceta, Bloomberg Línea and El País.
The crisis escalated within 72 hours: the BCP president resigned, prosecutors detained eight executives, Congress passed a law to advance payments to savers, and opposition and ruling-party deputies filed an impeachment request against President Santiago Peña, which the Chamber takes up this Thursday, November 5. This article summarizes what is known as of Thursday morning.
What happened to Ueno Bank
The BCP unanimously decided to apply Law 2334/03 on deposit guarantees and the resolution of financial institutions. At 3:24 a.m. on Tuesday, the bank's app stopped showing balances, El País reported. Inspections found accounting adjustments of more than 1.6 trillion guaraníes, difficulty replenishing a US$70 million legal reserve requirement and large loans to companies linked to the Vázquez Group, the majority shareholder, according to Perfil and La Gaceta.
View the data as a table
| Customers as of June 2026 | 2.94 million |
| Solvency ratio | 5.56% |
| Public funds on deposit | US$ 850 M |
| Depositors covered by the guarantee | 97% |
| Item | Figure | Source |
|---|---|---|
| Customers (June 2026) | 2,941,996 | Perfil |
| Solvency ratio | 5.56% (required minimum: 12%) | La Gaceta |
| Accounting adjustments | More than 1.6 trillion guaraníes | Perfil |
| Reserve requirement not replenished | US$70 million | El País |
| Public funds on deposit | About US$850 million | El País, Infobae |
| IPS retirees paid through Ueno | More than 32,000 | Bloomberg Línea |
| Daily transactions | More than 3 million | Bloomberg Línea |
| Branches | 75 | El País |
The BCP described the case as isolated and said the financial system as a whole remains sound, according to Bloomberg Línea. Days earlier, Ueno had announced a US$100 million capitalization plan.
What happens to deposits at Ueno Bank
The Deposit Guarantee Fund (FGD) covers up to 75 monthly minimum wages per depositor and per bank, not per account: currently about 228.3 million guaraníes, between US$37,400 and US$38,600 depending on the exchange rate each outlet uses (Bloomberg Línea, Perfil). According to the BCP, about 97% of depositors have balances fully covered. Any debts a customer owes Ueno are deducted before payment.
| Measure | Amount | Deadline |
|---|---|---|
| First payment announced by the BCP | Up to 10 million guaraníes (about US$1,675) | Shortly |
| Advance under emergency law (signed November 4) | Up to 40 minimum wages, 121.7 million guaraníes (about US$19,787) | Within 5 business days of taking effect |
| Full FGD guarantee | Up to 75 minimum wages, 228.3 million guaraníes | 15 calendar days from the resolution (November 17), extendable to December 2 |
| Balances above the cap | No automatic guarantee | Depend on the Banking Superintendency's exclusion of assets and liabilities |
Source: BCP, via Infobae, La Gaceta and La Nación. The legal deadline dates are those calculated by La Gaceta from the November 2 resolution. The BCP said it will seek to transfer deposits and other liabilities to other institutions through a competitive process.
Ueno Bank's size in the banking system
Ueno grew very fast. As of December 2025 it was Paraguay's fifth-largest private bank by loans and fifth by deposits, with market shares of 5.9% and 8.9%, up from 4.2% and 6.2% a year earlier, and its assets rose from US$1.785 billion to US$3.208 billion, according to the FIX SCR rating report of March 31, 2026, which affirmed its AA-py rating with a "strong" trend. In September, the Senate had already questioned the BCP over a US$40 million Ueno operation, ABC Color reported.
| Indicator (FIX SCR) | Dec 2024 | Dec 2025 |
|---|---|---|
| Assets | US$1.785 billion | US$3.208 billion |
| Deposit market share | 6.2% | 8.9% |
| Loan market share | 4.2% | 5.9% |
| Customers | — | 2.7 million |
Public funds and the IPS
The most sensitive case is the Social Security Institute (IPS), which manages pensions and health care. Figures for its exposure differ: Bloomberg Línea puts it at about US$300 million, Perfil at US$355 million (about 9% of its portfolio) and the Associated Press, cited by La Gaceta, at about US$380 million. The state power company ANDE, the binational Itaipú dam and the Economy Ministry also had funds there. The IPS said pensions will continue to be paid and it will move retirees who were paid through Ueno to another bank. Conmebol had US$14 million deposited, according to Clarín.
| Source | IPS funds at Ueno Bank |
|---|---|
| Bloomberg Línea | About US$300 million |
| Perfil | About US$355 million (9% of portfolio) |
| Associated Press, via La Gaceta | About US$380 million |
Arrests, resignations and impeachment
BCP president Carlos Carvallo resigned on November 3. Before joining the central bank in 2023 he had headed the Ueno finance company that gave rise to the bank. Peña named economist and former minister Raúl Vera Bogado to replace him, an appointment the Senate must confirm, according to Infobae. Prosecutors charged 27 people and detained eight executives, including Miguel Vázquez, chairman of the Vázquez Group; on November 4 they sought pretrial detention for him and house arrest for seven others, according to La Gaceta.
Peña was a partner in the Vázquez Group until March 2025, when he sold his stake, according to Bloomberg Línea. A petition with 35 signatures seeks his impeachment and that of Vice President Pedro Alliana for "poor performance of their duties"; former president Horacio Cartes said the Colorado Party will back it, according to Infobae. Bringing charges requires two-thirds of the Chamber of Deputies (53 votes), and removal requires two-thirds of the Senate, according to El País. Savers and retirees protested in Asunción for a second day, with clashes outside Congress and the presidential residence, La Nación reported.
- 2023Carvallo moves to the central bankHe had led the Ueno finance company, the bank's origin.
- Mar 2025Peña sells his stakeHe had invested in Ueno's parent company.
- Mar 2026FIX affirms AA-py ratingWith a "strong" trend and 2.7 million customers.
- Sep 2026Senate questions the BCPOver a US$40 million Ueno operation.
- Nov 2, 2026BCP orders the resolutionUnanimously, under Law 2334/03.
- Nov 3, 2026Closure and Carvallo's resignationAt 3:24 a.m. the app stops showing balances; the BCP president resigns.
- Nov 4, 2026Arrests, advance-payment law and impeachment bidEight executives detained; Peña signs the 40-minimum-wage advance and names Raúl Vera Bogado; 35 deputies seek impeachment.
- Nov 17, 2026Legal deadline for the guarantee15 calendar days from the resolution; extendable to December 2.
Retail is feeling it too: the importers and merchants association reported an immediate 35% drop in sales at large stores, according to El País. To see how the region's currencies and rates compare, check the ranking of Latin American currencies against the dollar and of interest rates by country.
Frequently asked questions
What happened to Ueno Bank?
The Central Bank of Paraguay took it over on November 2, 2026 for insolvency: its solvency ratio fell to 5.56%, against the required 12%, after accounting adjustments and loans to related companies.
Will Ueno savers get their money back?
The Deposit Guarantee Fund covers up to 75 minimum wages (about 228.3 million guaraníes) per person; the BCP estimates that fully covers 97% of customers. Any excess depends on the liquidation.
How much is the advance to savers?
The emergency law signed on November 4 allows an advance of up to 40 minimum wages (121.7 million guaraníes) within 5 business days. The BCP also announced a first payment of up to 10 million guaraníes.
Who is the new president of the Central Bank of Paraguay?
Raúl Vera Bogado, an economist and former minister, appointed by Santiago Peña after Carlos Carvallo resigned. The Senate must confirm him.
Will Santiago Peña be impeached?
Opposition and dissident deputies filed a request with 35 signatures and the Colorado Party said it will support it. The Chamber of Deputies takes it up on November 5; 53 votes are needed to bring charges.
