Paraguay Crisis: Pena Removal and Ueno Bank
PARAGUAY · DOSSIER
Paraguay lost its president and took control of a bank with nearly 3 million customers within one week. The Senate removed President Santiago Peña on Friday 6 November 2026, three days after the central bank announced the takeover of Ueno Bank.
Vice President Pedro Alliana, sworn in that evening, governs until August 2028 while savers are repaid in stages. Prosecutors (the Ministerio Público) say they have charged 27 people linked to the bank and have ordered the detention of Peña and the former central bank chief.
This page collects every Rio Times report on the crisis, with a timeline, a who’s who, the numbers in guaraníes and US dollars, and what nobody knows yet.
Key Facts
- Takeover The central bank (Banco Central del Paraguay, BCP) announced on Tuesday 3 November 2026 that it was taking over Ueno Bank, a procedure it calls “resolution”.
- Savers Payouts run in stages: balances up to 10 million guaraníes (Gs 10 million, US$1,673) first; the deposit guarantee cap is Gs 228.3 million (US$38,200).
- Presidency The Senate removed Peña on 6 November; Alliana took office the same evening.
- Courts Prosecutors say they have charged 27 people; ex-central bank chief Carlos Carvallo surrendered on the night of 6 November.
- Rate All US$ figures use Gs 5,976 per US$, the market close of Friday 6 November.
- Prediction markets Polymarket, a prediction-market exchange, gives President Alliana 11.5% to win the next election; politician Miguel Prieto leads at 20.5% (7 November, 7:09 a.m. ET).
Start with our guide to what happened in Paraguay and how the Ueno Bank case works. The newest reports follow below.
Timeline of the Crisis
- Monday 2 November 2026: The BCP’s governing board votes unanimously to start a “resolution” (a regulator-led takeover of a failing bank) of Ueno Bank, after its solvency ratio fell below half the legal minimum. The BCP announces the decision on Tuesday 3 November.
- Tuesday 3 November: Carlos Carvallo resigns as BCP president. The state pension institute (IPS) says retirees will still be paid (pension report).
- Wednesday 4 November: Reports say an emergency law lets the deposit guarantee fund (a state-backed fund that repays savers) advance up to 40 minimum monthly wages, about Gs 121.7 million (US$20,400), to eligible savers. Prosecutors say they have charged 27 people.
- Thursday 5 November: The BCP begins paying savers with balances up to Gs 10 million (US$1,673). Peña says he has resigned, but his lawyer says the Senate rejected it and the impeachment trial goes on.
- Friday 6 November: The Senate finds Peña guilty in an impeachment trial (a political process, not a criminal one) and removes him, unanimously among the senators present. Prosecutors order his detention on suspicion of breach of trust, reports say. The BCP says it has paid balances up to the Gs 228.3 million cap. Alliana is sworn in, and Carvallo surrenders to police that night.
- Saturday 7 November: Reports say the detained Peña was due to give a statement to prosecutors before noon. At a press conference, officials say almost 1.2 million savers have received transfers since Thursday.
- Tuesday 17 November: Pensioners paid through Ueno are due to receive their salary and year-end bonus through other banks.
Who Is Who
- Pedro Alliana: President since Friday 6 November 2026. He is a member of the Colorado Party, Paraguay’s dominant conservative party, and serves until August 2028. Profile.
- Santiago Peña: President from 2023 until his removal. Prosecutors ordered his detention for breach of trust, and his lawyer says there are no grounds.
- Carlos Carvallo: BCP president until he handed in his resignation on 3 November 2026. Prosecutors ordered his detention, and he surrendered to police on 6 November.
- Miguel Vázquez: Controlling shareholder of Ueno Bank. Reports say a judge ordered pretrial detention for him and other directors on 5 November; all are presumed innocent.
- Instituto de Previsión Social (IPS): The public pension and health institute. About 32,000 of its pensioners must move their accounts from Ueno to other banks, and public funds held there are part of the dispute.
Data Room: The Numbers in Gs and US$
| Item | Gs | US$ | Date | Status |
|---|---|---|---|---|
| Solvency ratio (capital against risk) | Below half the legal minimum; the BCP gives no exact ratio | n/a | Board decision Mon 2 Nov; announced Tue 3 Nov | Confirmed (wording only) |
| Clients affected | Nearly 3 million depositors (reports say 2.9 million) | n/a | From Tue 3 Nov | Reported; counts differ |
| First payout per saver | Up to Gs 10 million, minus debts at Ueno; needs an account at another bank | Up to US$1,673 | Payments began Thu 5 Nov; larger balances up to the cap reported paid Fri 6 Nov | Confirmed |
| Advance on the guarantee | Up to 40 times the legal minimum monthly wage, about Gs 121.7 million | About US$20,400 | Wed 4 Nov | Reported; rules still being set |
| Deposit guarantee cap | 75 times the legal minimum monthly wage, Gs 228.3 million per saver | About US$38,200 | Standing law | Confirmed |
| Savers paid so far | Almost 1.2 million savers (1,196,000) | n/a | Thu 5 and Fri 6 Nov, stated Sat 7 Nov | Reported by officials |
| Public money at Ueno | Gs 3.6 trillion plus US$233.4 million at 30 Sep 2026 (about Gs 5 trillion in all) | About US$836 million in all; claims run from US$780 million to US$850 million | 30 Sep 2026 (complaint figure); claims to 7 Nov | Contested; no official total published |
| People charged | 27 people | n/a | Wed 4 Nov | Reported by prosecutors; all presumed innocent |
| Guaraní per US$ | Gs 5,664 (Mon 2 Nov) to Gs 5,976 (Fri 6 Nov) | Dollar up 5.5% | Market close | Confirmed; BCP reference rate not used |
The full table with sources is in the Ueno Bank data room. Gs means guaraníes, Paraguay’s currency.
Is My Money Safe?
The deposit guarantee, a state-backed fund that repays savers, covers up to Gs 228.3 million (US$38,200) per person. Balances up to Gs 10 million were paid first, then larger balances up to the cap, the BCP says; amounts above the cap have no published date.
Our depositor guide explains who is paid first and how to check your group with the BCP.
What Prediction Markets Say
Polymarket, a prediction-market exchange, runs a market on who wins Paraguay’s next presidential election, with about US$12,000 traded. On 7 November at 7:09 a.m. ET it priced politician Miguel Prieto at 20.5%, Senate president Basilio Núñez at 18.5% and Colorado senator Raúl Latorre at 17.5%, and President Alliana at 11.5%.
These prices are bets, not polls, and the market is thin. Why we show this: prediction markets turn real-money bets into a live probability that moves within minutes of the news, which is why investors, campaigns and newsrooms in the United States now follow them closely. We show them next to polls and official results, never instead of them.
What Is Not Known
- The exact solvency ratio of Ueno Bank. The BCP communiqués say only that it was below half the legal minimum.
- The official vote count in the Senate. The Senate’s own statement says the vote was unanimous among the senators present and gives no number; press reports put it at 44.
- Peña’s exact legal position. Prosecutors ordered detention for breach of trust, but reports differ on whether he is held at home or in a security unit, and no further charges are confirmed.
- How much public money is frozen at Ueno: estimates range from US$780 million to US$850 million and no official total has been published.
- Who leads the central bank on an interim basis and who will lead it permanently: reports name different officials. Also open is whether and when amounts above the Gs 228.3 million cap will be paid.
- What happens to the frozen accounts. We found no statement from the International Monetary Fund (IMF) or the US government on the crisis as of Saturday 7 November.
Frequently Asked Questions
Why was President Peña removed?
The Senate found him guilty of poor performance of his duties after the collapse of Ueno Bank, and removed him on 6 November 2026. It is a political judgment; prosecutors have ordered his detention on suspicion of breach of trust.
Who is president of Paraguay now?
Pedro Alliana, the former vice president, was sworn in on Friday 6 November 2026 and serves until August 2028. He is a member of the Colorado Party.
Is my money safe at Ueno Bank?
Savers are covered up to Gs 228.3 million (US$38,200) each. The BCP started with balances up to Gs 10 million (US$1,673), then larger balances up to the cap; amounts above the cap have no published date.
What happened to Ueno Bank?
The BCP announced a takeover on 3 November 2026 after its capital fell below half the legal minimum. Nearly 3 million clients, according to reports, lost normal access, and prosecutors say they have charged 27 people.
All Reports in This Series
- Paraguay’s Ueno Bank case explained (the pillar guide)
- Ueno Bank crisis key figures in US$ (every number with its status)
- Is your money safe at Ueno Bank? (who is paid first)
- Dates to watch next (what is scheduled and what is not)
- What the regulator knew about Ueno Bank (supervision under the microscope)
- Ueno Bank and the capital floor (regulator steps)
- Paraguay bond risk after the bank failure (markets, the IMF, the US and Brazil)
- Paraguay’s new president Pedro Alliana (profile)
- Paraguay’s banking system explained (how banks work there)
- Ueno Bank and Nubank compared (two digital banks)
- Pension institute pledges to pay retirees (pensioners paid through Ueno)
- Ex-central bank chief Carvallo surrenders (6 November)
- Senate removes Peña, Alliana sworn in (6 November)
- Prosecutors enter the central bank (the probe widens)
- Peña skips his Senate trial (day one of the trial)
- First Ueno savers are paid (payout begins)
- Peña stays president despite quitting (resignation not accepted)
- The dollar and the guaraní after the bank failure (currency moves)
- Lawmakers spare Alliana (the next president)
- Peña announces his resignation (5 November)
- Protests and the impeachment push (4 November)
- Central bank chief Carvallo resigns (3 November)
- Ueno Bank’s US$100 million capital plan (before the takeover)
Background: who holds power in Paraguay, Paraguay’s history, travel advice for US visitors, October inflation, the guaraní and farm exporters.
Sources, read on Saturday 7 November 2026: the Senate of Paraguay’s statement on the impeachment trial; Banco Central del Paraguay communiqués of 3 to 7 November; prosecutors’ detention orders as published; market close of Friday 6 November; Polymarket.