Of the almost three million clients affected by the dissolution of the financial institution, nearly 1.2 million have already received the restitution of their savings, as reported this Saturday by the Central Bank of Paraguay. The process began with users who have accounts in other banks and do not have debts, but it is expected to reach 97% of those affected. The government of the new president Pedro Alliana also guaranteed the payment of the salaries of the 32,000 affected retirees.

First modification: 11/07/2026 - 19:59 Last modification: 11/07/2026 - 21:47

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After the expeditious dismissal of Santiago Peña as president of Paraguay and while the judicial case for the collapse of Ueno Bank progresses, the focus of the financial and political crisis is on the process of restitution of funds from affected clients.

In total, 2.94 million savers – which represents 60% of the adult population of the South American country, of 6.1 million inhabitants – have been unable to access their accounts since the now defunct financial institution was intervened by the Paraguayan Central Bank (BCP) last Tuesday.

Since the activation of the Deposit Guarantee Fund (FGD) on November 5, the Paraguayan State has begun to return the deposits of the victims, a process that has responded to nearly 1.2 million users until this Saturday.

Who was affected by the dissolution of Ueno Bank?

With the resolution process dictated by the BCP after detecting that Ueno Bank operated with a solvency index below half of the established legal minimum, clients saw their access to their accounts at the entity frozen, which in just three years went from being a financial institution specialized in technology to becoming the main digital bank in Paraguay.

According to the Association of Importers and Merchants of Paraguay (Asimcopar), this caused a "semi-paralysis" of the commercial market, noting that "two out of every three electronic operations are carried out through accounts" of the disgraced bank.

In panic, thousands of citizens mobilized since Tuesday to different branches of Ueno Bank, to the vicinity of government buildings and Santiago Peña's home to demand access to their savings, in many cases, gathered from a lifetime of work. Under heavy police deployment, officers, in some cases, fired rubber bullets and used pepper spray to repress protesters.

Benefiting in recent years from public contracts – another reason for questioning Peña, who was a shareholder in the group that owns the bank until March 2025 –, Ueno Bank also managed between 800 and 850 million dollars in state funds, including some 355 million corresponding to the state pension and health fund. Some 32,000 retirees received their payments through the entity's accounts.

The wide scope of the crisis also hit, for example, Paraguayan soccer. Many players had accounts with Ueno Bank, which was also a sponsor of several first division clubs and the Copa Sudamericana, the second most important tournament of Conmebol, an institution that also had deposits in that financial institution, equivalent to 2.3% of its income.

The shocks had repercussions on the labor market, with thousands of workers suspended from their jobs in companies linked to the Vázquez Group – owner of Ueno Bank – or that provided services to the defunct bank.

The crisis even reached Argentina, where some 1,000 employees of the ITTI technology company from the same group were suspended for 30 days without pay.

Read alsoThis we know about the Ueno Bank scandal, the crisis that brought down the Paraguayan president Santiago Peña

Who has started to receive their savings back?

With the bank's intervention, the Deposit Guarantee Fund (FGD) was activated, which covers up to 75 minimum salaries or about 228,300,000 guaraníes (around $36,000) "per natural or legal person," according to the Central Bank (BCP), which began making payments on Thursday.

The process began with clients who do not have debts with Ueno Bank and who have an account in another bank to receive the funds.

This Saturday, November 7, the interim president of the BCP, Pedro Acosta – who took office after the departure of Carlos Carvallo Spalding, identified and detained along with Peña as part of the ongoing judicial investigation – reported that nearly 1.2 million clients have received the return of their funds in the last two days.

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Acosta detailed that the transfers amount to 996,000 million guaraníes or the "equivalent of 160 million dollars." "Between Thursday and Friday we have reached a total of 1,196,000 people who have already benefited from the payment of the state guarantee," said the head of the BCP.

According to the official, the first round of disbursements covered amounts from one to 10 million guaraníes (about $1,600) and a second from 10 million guaraníes to 40 minimum wages, which is equivalent to 121.7 million guaraníes (about $19,000).

Read alsoParaguay: the Ueno Bank storm swept away Santiago Peña, dismissed, detained and replaced

Who is waiting for a response?

Those who have deposits of less than 10 million guaraníes will be able to receive all of their savings, but the first disbursement does not mean that all clients will recover their funds and the process to serve those affected continues. Estimates indicate that the FGD will cover 97% of depositors, but organizations and institutions could face losses.

Acosta explained that starting Monday he will begin the procedure for the restitution of funds to clients who had debts with the disappeared financial institution, after discounting the expired obligations and up to the legal limit of coverage of 40 minimum wages. This includes those who have loans, overdrafts or pending credit card payments.

Likewise, the president of the Social Security Institute (IPS), Derlis León, announced this Saturday that the more than 90,000 retirees in the country will receive their salaries "in a timely manner" on November 17, including the 32,000 who received their pensions in Ueno, for whom the migration process "to eight square banks" is being finalized.

In the waiting line are some 262,000 clients who did not have an alternative bank account, a group that includes unregistered workers. In a country with high labor informality like Paraguay, these people found it easier to open an account in the digital bank, compared to traditional entities. These users will be distributed among 15 banks and, once the transfer is complete, they will be able to receive their remuneration.

The situation is more complex for clients who had amounts above the legal limit covered by the FGD. These large depositors will have to wait for the liquidation of Ueno Bank's assets and, according to experts, this may not be enough to cover all of the funds.

Regarding the current contracts of companies of the Vázquez Group with the State, the head of the National Directorate of Public Procurement (DNCP), Agustín Encina, indicated to the local media 'ABC' that they could be terminated if non-compliance is detected or completed if the degree of execution is advanced. If the link is new, however, the state agency involved must terminate it and call for a new public tender.

Read alsoThe fall of Ueno Bank shakes the Paraguayan financial system: Where did the money go?

What have been the reactions of those affected?

Although the response process to those affected is ongoing, concern remains over the recovery of funds, waiting for the situation to stabilize. Upon assuming office, the former vice president and now new president, Pedro Alliana, promised that the victims "will be fully compensated."

An example of the persistent unrest is that the Federation of Educators of Paraguay (FEP), the main teaching union with more than 40,000 members, called for an indefinite general strike starting Monday to demand that the protection of public pension funds be guaranteed.

Regarding the taking of responsibilities, the dismissal of Peña aroused signs of joy among the citizens, although it did not completely appease the anger of many Paraguayans, who expected a complete change in the Executive Branch.

"Let them all go" was a cry repeated by the hundreds of people who gathered outside Congress while the impeachment trial against the president was taking place on Friday, dissatisfied with the entire management of the Colorado Party, the predominant force in Paraguayan politics.

Many protesters, especially young people, remained vigil on Friday after Peña's ouster. "The people are still here until they all leave," Cecilia Lugo explained to the EFE agency, who considered that Peña and his former vice president and now new president Pedro Alliana "are the same."

Read alsoWho is Pedro Alliana, the new president of Paraguay? What measures will you take in the face of the crisis for Ueno Bank?

A similar claim was expressed by Milda Cuevas, who demanded that Peña "be tried" and "go to jail," but lamented that "the coming government is more of the same."

"We are tired, Ueno was just a demonstration of the millions and millions of money taken out of our pockets as citizens," said another protester, Andrea Gutiérrez.

With EFE, AP and local media

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