Ueno Bank’s collapse has pushed Paraguay into a political and financial crisis, with lawmakers preparing to consider impeachment proceedings against President Santiago Peña and Vice-President Pedro Alliana.
The Chamber of Deputies scheduled an extraordinary session for Thursday, November 5, 2026, at 10 a.m. local time to examine requests for political trials against both leaders.
The session follows the Banco Central del Paraguay’s decision to begin a formal resolution process for Ueno Bank after determining that the institution’s solvency ratio had fallen below half the legally required minimum.
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Why Paraguay lawmakers are acting
Paraguay’s Chamber of Deputies said 35 legislators submitted accusation documents against Peña and Alliana on November 4.
The allegations include questions about Peña’s former links to Ueno’s corporate structure, the appointment of Central Bank President Carlos Carvallo, who previously led Financiera Ueno, and the handling of public and pension funds deposited with the bank.
Those allegations are claims made by the lawmakers who filed the requests and have not been established by a court.
Under Article 225 of Paraguay’s Constitution, the Chamber of Deputies must first approve an accusation by a two-thirds majority before the Senate can act as the trial chamber.
The November 5 session will therefore determine whether the impeachment requests move forward, not whether Peña or Alliana are immediately removed from office.
What happened to Ueno Bank
The Central Bank approved the resolution procedure on November 2 and announced it publicly on November 3.
The regulator said adjustments made during a financial regularization process left Ueno Bank with a solvency level below 50 per cent of the required minimum.
Resolution is a legal process intended to allow authorities to preserve the institution’s assets, assess its financial position and protect depositors while determining the next steps for the bank.
The Central Bank said the case was specific to Ueno Bank and did not represent a generalized condition across Paraguay’s financial system.
Ueno Bank had previously said it served more than three million Paraguayans, making the resolution especially significant for households, businesses and public institutions that relied on the bank.
Depositor payments begin
The immediate concern for customers is access to their money.
The Central Bank said on November 4 that an advance payment from the Deposit Guarantee Fund would begin within 24 hours and would be completed within no more than five business days.
The advance can reach 40 monthly minimum wages per depositor, with overdue debts owed to Ueno Bank deducted from the amount.
Customers with accounts at another financial institution are expected to receive the payment there, while people without another account may have a savings account opened for them at an eligible bank or finance company.
The Central Bank said customers would begin receiving emails on Thursday, November 5, identifying the institution assigned to make the payment.
The advance-payment measure does not necessarily settle every claim against the bank.
The regulator’s resolution notice states that the broader legal deposit guarantee covers up to 75 monthly minimum wages per person or entity at each financial institution, equivalent at the time to 228.3 million Paraguayan guaraníes.
Authorities will still need to determine how deposits above the immediate advance are handled during the resolution process.
Lawmakers move to protect public funds
Paraguay’s legislature has also moved to expand protection for public money held at Ueno Bank.
The Senate approved legislation that provides an advance of up to 40 monthly minimum wages per depositor and sets a payment timetable after the banking resolution takes effect.
The measure was framed as a response to concerns involving state funds and pension-related money held at the bank.
The Chamber of Deputies has separately described the recovery of depositors’ savings as a priority while authorities investigate what led to the bank’s failure.
Criminal investigation continues
Paraguay’s Public Prosecutor’s Office said on November 4 that prosecutors were investigating the Ueno Bank case.
The office said the investigation began after a complaint was submitted by directors of the Central Bank.
Prosecutors have formed a team to examine the reported conduct and determine whether criminal responsibility exists.
The investigation is separate from the political process in Congress and from the Central Bank’s regulatory resolution procedure.
Any criminal or political responsibility remains to be determined through the relevant legal processes.
What happens next in Paraguay
The first immediate deadline is the Chamber of Deputies session at 10 a.m. on November 5.
If the required two-thirds majority is not reached, the impeachment requests will not advance to the Senate.
If the accusation passes, the Senate would then decide whether to conduct a political trial under the constitutional procedure.
At the same time, Central Bank-appointed officials will continue reviewing Ueno Bank’s assets and liabilities, while depositors await the first payments under the guarantee process.
The outcome will determine whether Paraguay’s crisis remains focused on one bank or develops into a broader test of confidence in the country’s financial supervision and political institutions.
Frequently Asked Questions
Why is Paraguay considering impeachment proceedings against Santiago Peña?
Lawmakers who filed the requests cite alleged conflicts of interest, concerns about Ueno Bank’s links to political figures and the handling of public funds. The allegations have not been proven in court.
When will Paraguay’s Chamber of Deputies consider the impeachment requests?
The Chamber scheduled an extraordinary session for Thursday, November 5, 2026, at 10 a.m. local time.
How much can Ueno Bank depositors receive in the first payment?
The advance can reach 40 monthly minimum wages per depositor, after overdue debts owed to Ueno Bank are deducted.
When will Ueno Bank deposit payments begin?
The Central Bank said payments would begin within 24 hours and the process would not exceed five business days. Customers were expected to receive payment-location emails starting November 5.
Is Paraguay’s entire banking system in crisis?
The Banco Central del Paraguay said the Ueno Bank case was specific to that institution and did not represent a generalized condition across the country’s financial system.
Fact-Checked: Key facts were checked against official statements from Paraguay’s Central Bank, Chamber of Deputies and Public Prosecutor’s Office.
Disclaimer: Deposit recovery, political proceedings and criminal responsibility remain subject to decisions by Paraguay’s competent authorities.