Ueno Bank crisis leads to resignation at Paraguay's Central Bank and impeachment requests

On Tuesday, November 3, Carlos Carvallo, president of the Central Bank of Paraguay, resigned amid a financial crisis involving Ueno Bank, an institution with around 3 million customers in the country. The crisis was triggered by a drop in the bank's solvency ratio, as announced by the Central Bank that same day, which also initiated intervention proceedings.

Ueno Bank, known as one of the largest credit card issuers in Paraguay, is facing severe financial problems and has become the subject of investigations. The financial difficulties of the institution led to the suspension of its operations and the need for a judicial recovery process, as reported by the Financial Times.

In response to the crisis, President Santiago Peña's government announced a plan to compensate customers affected by the bank's closure. The government is working in conjunction with Congress to implement legislation that would allow the use of a Guarantee Fund to reimburse the deposits of thousands of customers.

The crisis at Ueno Bank has triggered a wave of protests in Asunción, resulting in the arrest of eight people linked to the bank. The structural issues within the institution and the financial impact on customers have increased pressure on Peña's government, leading to rising public discontent.

Amid this chaos, opposition lawmakers have filed impeachment requests against Santiago Peña, holding him accountable for the crisis and for failing to defend the interests of Ueno Bank's customers. The opposition argues that the president's administration should have acted more effectively to prevent the situation.

President Peña, who took office after Carvallo, appointed a new leader for the Central Bank and pledged to expedite the compensation process for affected customers. The outcome of this case is generating significant debate about government accountability and the necessary reforms to restore trust in the financial system.