Clashes broke out in central Asunción after Ueno Bank depositors took to the streets to protest over their blocked funds and demanded the impeachment of President Santiago Peña. According to ABC Color, police used rubber bullets and tear gas, while a water cannon was also deployed near Congress. Police said they began dispersing the crowd after some demonstrators attempted to breach the barriers.
The protesters are demanding that the money in their accounts be returned and that Peña resign. They include depositors, pensioners, students and workers. Demonstrations also continued in front of the Pantheon of the Heroes after the crowd was pushed away from the Congress area.
„I lost all my savings,“ 68-year-old Marcelino Vergara told AFP during the protests.The discontent erupted after the Central Bank of Paraguay began proceedings to restructure Ueno Bank on November 3 due to a severe capital shortfall. The bank suspended its services, and customers are temporarily unable to access their funds. Ueno has more than 3 million customers in a country with a population of around 6.5–7 million.
The case also has a strong political dimension. Peña owned shares in the group that controlled Ueno Bank, but sold them in 2025. Carlos Carvallo, who headed the Central Bank until November 3, had previously been an executive at Ueno. At the president’s request, he resigned. Meanwhile, arrest warrants have been issued for eight executives of the financial institution, including its president, Miguel Vázquez.
Opposition calls for impeachment
Opposition lawmakers and representatives of the ruling party’s dissident faction filed articles of impeachment against Peña and Vice President Pedro Alliana. They accuse the two men of a conflict of interest, directing public and pension funds to Ueno Bank, and taking actions that they say have damaged confidence in the financial system.
The proposal has received 35 signatures, AFP reported. A total of 53 votes in the 80-seat Chamber of Deputies are required to initiate the proceedings. If approved, the matter will be sent to the Senate, where 30 of 45 votes are needed. Peña’s ruling party holds a majority in both chambers, making the outcome of the vote uncertain.
The Chamber of Deputies is due to discuss the motion on Thursday morning. Alongside the political pressure, the authorities are preparing to pay out guaranteed deposits. Peña said the financial system is stable and that mechanisms had been put in place to protect depositors. The law cited by AFP provides for the payments to be made within five days.
Sources: abc.com.py, afp.com, ultimahora.com