The collapse of the fast-growing digital lender Ueno has prevented millions of depositors from retrieving their life savings, triggering intense scrutiny of state oversight bodies. Although President Santiago Peña offered his resignation during the ensuing fallout, Congress rejected the offer in favor of pursuing formal impeachment proceedings. Lawmakers allege that the president demonstrated severe negligence and engaged in an active cover-up regarding the bank's true financial insolvency. This rapid escalation has transformed a financial sector failure into a full-scale battle over governmental accountability.
Key points
Lawmakers accused the president of negligence and complicity in covering up the lender's…: Lawmakers accused the president of negligence and complicity in covering up the lender's insolvency.
Regulatory failures at state institutions have escalated a digital banking collapse into…: Regulatory failures at state institutions have escalated a digital banking collapse into an executive crisis.
The confrontation between Congress and the presidency has expanded the financial scandal…: The confrontation between Congress and the presidency has expanded the financial scandal into severe political turmoil.
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Inside Story
Why is Paraguay facing a banking and political crisis?
Ueno collapse raises questions about state influence and accountability.
Paraguay is engulfed in political turmoil after a banking scandal put its president and major institutions under scrutiny.
At the centre is Ueno, a fast-growing digital lender, whose collapse has left millions of people unable to access their savings. But the fallout goes beyond the banking sector.
Congress has rejected President Santiago Pena’s resignation and is pressing ahead with impeachment proceedings. He’s accused of negligence and being complicit in an alleged cover-up of the bank’s insolvency.
So, what went wrong? Were regulators compromised by political influence? And who should be held accountable?
Presenter: Dareen Abughaida
Guests:
Daniel Duarte Braga – Journalist and contributing editor to The Paraguay Post
Mariano Machado – Principal Americas analyst at global risk intelligence firm, Verisk Maplecroft
Javier Farje – Historian specialising in Latin American affairs
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