ASUNCIÓN, Paraguay — Almost 1.2 million Ueno Bank customers had received advance payments through Paraguay’s state deposit guarantee fund by Saturday, authorities said, but many were still waiting after the bank’s collapse disrupted access to money across the country, NPR reported.

The crisis has shaken confidence in the banking system and brought down President Santiago Peña, who faces criminal charges linked to his alleged role in directing public money toward the bank.

Ueno’s services stopped working early Tuesday. The bank said it had 2.9 million customers, roughly 60 per cent of Paraguay’s adult population, while the Central Bank put its number of depositors at approximately 1.8 million.

NPR’s Charles Parkinson reported that the disruption reached into everyday purchases and students’ basic expenses. Batarram Caballero, a student leader at the National University of Asunción, said classmates had money frozen that they needed for bus fares and food.

“People don’t have any trust,” Elizabeth González, a barista in downtown Asunción, told NPR. She described a customer who insisted on paying cash because he no longer trusted banks.

Ueno began as a fintech in 2021 and started operating as a bank in November 2023. Its rapid growth relied on phone-based accounts, cashback offers and other payment incentives.

The bank also held substantial public investments. Paraguay’s Social Security Institute, known as IPS, had around $355 million invested in Ueno, approximately nine per cent of its portfolio, according to NPR.

Prosecutors allege Peña used his presidency to influence public agencies and state-owned entities to maintain deposits at Ueno despite his connections to its parent group. He held shares in Ueno Holding after taking office and sold them in March 2025.

Peña resigned Thursday and was impeached and removed Friday. Prosecutors charged him Saturday with breach of trust and administration for personal gain, and he was ordered held in pretrial detention pending investigation. He has pleaded not guilty.

Vice-President Pedro Alliana has been sworn in to serve the remainder of the presidential term, which ends in August 2028.

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