Following a severe banking crisis and financial turmoil in Paraguay, new President Pedro Alliana ordered all ministers to resign immediately so he could restructure the government.
The severe banking crisis blocked millions of people from withdrawing money from their bank accounts, prompting Paraguay’s central bank to take immediate control of Ueno Bank’s operations. The crisis followed a Senate vote to remove former President Santiago Peña over his close links to the collapse of Ueno Bank. To ease public anger and stabilise the economy, the central bank began returning deposits through a Guarantee Fund. By the first weekend of November, nearly US$160 million had been returned to about 1.2 million people.
Former Paraguayan President Santiago Peña, who took office in 2023, has been accused of holding shares in Ueno Bank’s parent company before selling them last year. He is also suspected of using political influence to redirect millions of dollars in government deposits to the bank and of trying to conceal information about the financial crisis despite repeated warnings about liquidity problems and questionable loans. Article: Rithy
