Paraguay's president removed after bank collapse

Paraguay's president has been removed from office after a major bank with close ties to his administration went under, leaving millions without access to their savings. The collapse of Ueno Bank, which was established in 1976 and managed $800m of public funds, has sparked a financial crisis in the country.

Ueno Bank had 3 million customers and was put into resolution by the central bank on Monday, after it was found to have loaned $146m to companies tied to its owner, Grupo Vasquez, a company in which President Santiago Pena held a stake until March 2025. The president's removal is a significant consequence of the bank's collapse, highlighting the close ties between the government and the banking sector.

The situation is being closely watched, as it is not an isolated incident, but rather the latest in a series of banking crises to affect Paraguay. Further action is expected to be taken to address the financial crisis and restore stability to the country's banking system.