Paraguay partially refunds Ueno Bank depositors following lender collapse

Paraguay's Central Bank partially returned savings on Wednesday to all eligible Ueno Bank depositors who were locked out of their accounts, France 24 reported. Central Bank official Pedro Acosta confirmed the payments after the digital lender collapsed following a regulatory takeover on November 3. [1]

The financial crisis triggered mass street protests and led to the impeachment and arrest of former President Santiago Pena, according to France 24. Pena is accused of directing state funds to the bank, which is linked to the former leader. [1]

As FTMQ News reported earlier, Paraguay's Senate voted 44 to 0, with one abstention, to impeach Pena. Police subsequently raided his home and placed him under house arrest. Central bank regulators closed Ueno Bank after its capital ratio dropped below half of the legal minimum, which froze deposits for almost three million customers. Vice President Pedro Alliana was subsequently sworn in as the 53rd president of Paraguay. [10][11]

Ueno Bank S.A. was based in Asuncion and operated mainly through digital payment platforms, originating from financial institutions dating back to 1976. The bank received a banking license in November 2023, absorbed Vision Banco in 2024, and reported serving 2.94 million users by June 2026, which represented over 60 percent of the adult population in Paraguay. [6][8]