Paraguay Central Bank Dissolves Ueno Bank Amid Solvency Crisis

The Central Bank of Paraguay announced early Tuesday, November 3, 2026, that it had begun resolution proceedings against Ueno Bank, one of the country's largest financial institutions. The move follows the discovery of a serious shortfall in solvency indicators and credit operations linked to the bank's own controllers.

The crisis places billions of deposits at risk, including public funds earmarked for Paraguay's social security system. The bank's collapse comes as Paraguay, led by conservative President Santiago Peña, has become a preferred destination for Bolsonaro supporters seeking to leave Brazil after Flávio Bolsonaro's October 25 election defeat.

“He is detained at the Investigations Department, he came voluntarily, upon learning the news, he told me he wanted to present himself voluntarily as soon as possible and we brought him. We accompanied him.”

Paraguay resumed migration regularization drives on Monday, November 2, starting in Ciudad del Este on the border with Foz do Iguaçu, Brazil. The timing highlights a contradiction in far-right narratives that portray Paraguay as a low-tax economic paradise with limited state intervention.

Ueno Bank expanded rapidly in recent years by acquiring traditional institutions such as Visión Banco in 2024 and pursuing aggressive credit growth. It also invested heavily in advertising and sports sponsorship, including naming rights to Asunción's Defensores del Chaco stadium.

In March 2026, Ueno Bank carried out an international debt bond issuance. The bank's trajectory has drawn comparisons to Brazil's Banco Master scandal involving Daniel Vorcaro, pension funds, and controversial operations.

Miguel Vázquez, a Ueno Bank board member and president of Grupo Vázquez, voluntarily presented himself to the National Police's Investigations Department after an arrest warrant was issued. His lawyer said Vázquez turned himself in upon learning of the order through media reports.

Six of eight Ueno Bank executives facing arrest warrants have been detained so far. The Public Ministry issued Note No. 01 dated November 3, 2026, under Case No. 89/2026 titled "Federico Miguel Vázquez Villasanti and others / Breach of trust and others," ordering the immediate detention of eight people.