# Ueno Bank Scandal Threatens Paraguay

> Paraguay's financial crisis deepens as Ueno Bank collapses under Central Bank intervention.
- Title: Ueno Bank Scandal Threatens Paraguay · Buenos Aires Herald
- Summary: Paraguay's financial crisis deepens as Ueno Bank collapses under Central Bank intervention. Paraguay's Central Bank seized Ueno Bank, a major digital lender…
- Keywords: paraguay, ueno bank, central bank, santiago pena, paraguayan government, financial crisis, public funds, deposit guarantee fund, argentina, Buenos Aires Herald
- Source: Buenos Aires Herald — https://buenosairesherald.com/world/latin-america/ueno-bank-scandal-threatens-paraguays-reputation-and-penas-presidency
- Author: Buenos Aires Herald
- Published: 2026-11-04T16:22:33+00:00
- Read time: 1 min
- Topics: paraguay, ueno bank, central bank, santiago pena, paraguayan government, financial crisis, public funds, deposit guarantee fund, news, argentina
## Ueno Bank Seized
Paraguay's Central Bank took control of Ueno Bank, a fast-growing digital lender with close ties to President Santiago Peña.
## Funds Frozen
The move froze nearly three million customers' funds and raised questions about government oversight of the financial system.
## Solvency Crisis
The Central Bank suspended Ueno Bank's operations after finding its solvency ratio fell below 50% of the legal minimum.
## Public Funds at Risk
Ueno manages approximately US$850 million in public funds, including pensioner benefits and social security investments.
## Leadership Fallout
Eight senior executives were arrested, including Ueno's CEO and founder, Miguel Vázquez.
## Presidential Pressure
President Peña resigned the Central Bank head and agreed to a bill for immediate depositor payouts using the Deposit Guarantee Fund.
## Key takeaway

Paraguay's Central Bank seized Ueno Bank, a major digital lender with 2.9 million customers, after its solvency ratio fell below 50% of legal minimum, threatening President Peña's presidency and public funds.