erik willey

🇵🇾 Chaos on the streets as Paraguay’s largest digital bank collapses Nearly 3 million customers affected as the country faces a major political and financial crisis. Paraguay’s Central Bank (BCP) seized Ueno Bank, the country's largest digital lender, after its solvency ratio collapsed to less than half the legal limit. Central Bank President Carlos Carvallo resigned at the request of President Santiago Peña. Carvallo previously chaired the finance company that evolved into Ueno Bank, drawing heavy criticism over regulatory blind spots and conflicts of interest. The Specialized Unit for Economic Crimes and Anti-Corruption ordered the detention of eight high-level executives and figures tied to the bank, including founder and majority shareholder Miguel Vázquez and Ueno Bank President Juan Manuel Gustale. The intervention completely froze Ueno Bank’s digital app, credit cards, and transfer capabilities. This has locked out roughly 3 million users, an estimated 60% of Paraguay's adult population, leaving many with no immediate way to access their money. The state health and pension fund (IPS) has an estimated $380 million in public retirement funds invested in Ueno Bank. Angry citizens, savers, and pensioners flooded the streets of the capital and gathered outside closed branches, demanding their cash and chanting for political accountability.