Paraguay’s digital bank ueno collapsed after financial problems, which caused a big crisis in the country. Ueno was a popular online bank that started in 2021 and reached almost three million customers, or about half of Paraguay’s people. On 3 November, the Central Bank of Paraguay took control of ueno because it did not have enough money to meet the legal requirements. The government froze customers’ accounts while checking the bank’s finances.

Ueno’s main problem happened because it grew very fast after launching, but did not keep enough money to stay safe. Many public institutions, including the state pension system, kept their funds in ueno, with a total of around $850 million. There were also reports that the bank gave too many loans to companies connected to its owners.

The most important result was that President Santiago Peña lost his job and was arrested. Paraguay’s Senate removed Peña from office on 6 November, and Vice President Pedro Alliana became the new president. Officials said they would continue to help customers get their savings back through the country’s deposit-guarantee scheme.