'Give Us Back Our Money!' Chaos in Paraguay as Crowds Besiege Shuttered Ueno Bank Branches After President Resigns

Paraguay's President Santiago Peña announced his resignation on Thursday, shortly before legislators voted 78–0 to impeach him, as protesters demanded access to savings frozen at Ueno Bank. The crisis left millions unable to use their accounts and drew scrutiny of the lender's political connections, supervision and public-sector deposits.

'Give us back our money,' read signs carried by demonstrators in Asunción, where protests continued for a third day. Depositors, retirees and workers sought repayment, while others demanded Peña's removal.

Impeachment Follows Resignation Announcement

The lower house's vote on 5 November sent the charges to the Senate, where a two-thirds majority was required to convict and remove Peña. Congressional acceptance of his resignation remained a separate process, according to the Associated Press.

Interior Minister Enrique Riera later delivered Peña's resignation letter to Congress. Vice-President Pedro Alliana was next in the constitutional line of succession, but the handover was not yet complete.

Peña's Business Ties Under Scrutiny

Thirty-five legislators initially submitted impeachment articles alleging conflicts of interest, misuse of pension funds and institutional cover-ups linked to Ueno's collapse.

Peña had been a business partner of the group that owned Ueno until March 2025, Reuters reported. In a statement to the news agency, Ueno said Peña had never had a relationship with the bank itself as a shareholder or investor.

Peña appointed Carlos Carvallo, formerly head of Ueno's predecessor Financiera Ueno, to lead the central bank. Pedro Acosta Bernal subsequently became interim president after Carvallo submitted his resignation. Peña rejected suggestions of improper ties and apologised without explicitly accepting responsibility, saying his departure would preserve stability and democratic institutions.

Savers and Workers Demand Payment

Ueno's app, cards and transfers stopped working and branches closed, leaving depositors queuing outside without access to savings, as documented in the account of the demonstrations. Police used pepper spray and rubber pellets during Wednesday's protests, while demonstrators also called for Peña's impeachment.

Hundreds of employees of Ueno and other Grupo Vázquez companies protested outside the Labour Ministry on Thursday, demanding unpaid wages and severance. Approximately 7,000 employees were affected by the closure, AP reported. Officials said arrangements were being made to help customers transfer their accounts to other banks following Ueno's closure.

Court Orders Detention as Inquiry Expands

Regulators identified poorly documented lending to companies linked to Ueno's owners and expenses wrongly counted as assets. The central bank's resolution announcement confirmed that accounting adjustments left the solvency ratio below half the required minimum, prompting its decision on 2 November.

Judge Rodrigo Estigarribia ordered six executives into preventive detention and two others into electronically monitored house arrest on 5 November. Prosecutors formally accused 27 people linked to Ueno and associated businesses of alleged financial offences, while lawyers for several detainees sought time to examine the allegations.

IPS Sets Out Pension Arrangements

Ueno reported roughly $800 million (approximately £593 million), in public deposits as of October, including pension and health funds and hydroelectric dam operators' money. IPS said monthly pensions were financed through employer and employee contributions, separately from its bank investments.

Its official assurance said funds for the annual additional benefit, payable from 17 November, had been reserved from interest and returns. IPS also began arranging alternative banking for approximately 32,000 pensioners and said it would establish a technical and legal team to protect institutional resources.