Paraguay bank crisis sparks impeachment bid
The gist
Paraguay's central bank placed Ueno Bank into resolution, freezing deposits for about 2.6 million depositors.
Opposition lawmakers want President Santiago Peña removed over his former bank ties.
How it unfolded
- Nov 2, 2026The Central Bank of Paraguay decided to initiate resolution proceedings against Ueno Bank.
- Nov 3, 2026Ueno was placed into resolution after an audit showed its capital adequacy ratio fell below half the legal minimum; normal operations halted and customers could not withdraw deposits. Hundreds gathered in central Asunción demanding their deposits back, some camping overnight near parliament.
- Nov 4, 2026Opposition lawmakers filed impeachment charges against President Santiago Peña and Vice President Pedro Alliana, with 35 signatures in the 80-member lower house. BCP board member Marco Aurelio González resigned, following bank President Carlos Carvallo and board member Carmen Marín. Police used a water cannon and tear gas near Congress after what they said was an attempt to breach a security barrier. A judge accepted prosecutors' charges against 27 people, with pretrial detention requested for principal shareholder Miguel Vázquez.
Key terms
- capital adequacy ratio
- A bank's capital expressed as a percentage of its risk-weighted assets, ensuring it can absorb losses.
- impeachment
- A process by which a legislative body charges a public official with misconduct, potentially leading to removal.
Source: Wikipedia