Paraguay is dragging politicians in the street — literally. On Thursday night outside Ueno Bank headquarters in Asunción, former senator and firebrand Paraguayo "Payo" Cubas tried to hijack a mass demonstration of savers and got carried out by the crowd itself.
Protesters shouted "divisor" and "oportunista" — divider, opportunist — booed, shoved and forced him out. Video shows him being dragged as crowd chants he is a distraction. They also blamed him for current Senate makeup: Diario Hoy reported they said Cubas put Zenaida Delgado and Javier Vera on his Cruzada Nacional ticket, who later defected to the government.
Context: Ueno Bank, a digital lender that rocketed from fintech to Paraguay's fifth-largest bank in five years, collapsed this week. Central Bank took it over Nov 3 after solvency ratio fell to less than half legal minimum. Immediate freeze: 3 million customers — about 60% of adult Paraguayans — locked out of savings, salaries, cards. Bank also held $800-850 million in public money — pensions, health funds, state entities.
Thousands burned debit cards outside headquarters. Lines snaked down Asunción streets. Other banks' apps crashed as panicked users tried to move money. Guarani fell 5%, bonds tanked.
Political fallout was instant. President Santiago Peña, who held shares in Grupo Vázquez that controlled Ueno until March 2025, submitted resignation Nov 5. Congress refused it and pushed impeachment. Lower house voted 78-0 to impeach, Senate voted to remove Nov 7. He was placed under house arrest Friday on suspicion of breach of trust. Prosecutors charged 27 Ueno executives including founder Miguel Vázquez for breach of trust and fraud for funneling uncollateralized loans to private conglomerates. Central Bank Governor Carlos Carvallo was dismissed.
Deposit guarantee covers up to 228.3 million guaraníes — $36,000 — but first payouts only for accounts up to 10 million guaraníes ($1,600) with no debts to Ueno and alternate bank account. Central Bank says that covers 97% of depositors. Pensioners like 21-year-old Andres Maldonado told AFP: “My family ran out of money, we don't have cash. Santi is a criminal.”
Paraguay's crisis is classic emerging-market digital banking lesson: aggressive growth, weak oversight, politically connected ownership, public funds parked in risky lender. For India, where 70% of Jan Dhan accounts are in digital-first small finance banks, it is cautionary — deposit insurance Rs 5 lakh helps, but trust collapses faster than apps.
Payo Cubas thought angry crowd wanted a leader. They wanted their money back. Sometimes best strategy is staying away.
*Tags:* #Paraguay #UenoBank #PayoCubas #SantiagoPena #Asuncion #BankCollapse #Impeachment #Protests #DigitalBank #FinancialCrisis