AGP Executive Report

Banking Crisis: A judge ordered former President Santiago Peña held in pretrial detention at a military facility after prosecutors charged him over alleged misconduct tied to Ueno Bank’s collapse. Prosecutors say Peña and former central bank chief Carlos Carvallo improperly handled public and pension funds; both deny wrongdoing. The bank’s failure disrupted access to savings for nearly 3 million customers and triggered protests and a political crisis. Depositor Relief: New President Pedro Alliana says affected customers will be fully compensated. The central bank reports that about 1.2 million accounts have received partial or full reimbursement, while the government has pledged to maintain pension payments and annual bonuses.

Banking Crisis: Former president Santiago Peña appeared before prosecutors Saturday over alleged breach of trust, influence-peddling and misuse of funds linked to Ueno Bank’s collapse. The lender’s failure froze access to accounts for nearly 3 million customers and triggered Peña’s impeachment and house arrest; he denies wrongdoing. Depositor Relief: The Central Bank says 1.196 million customers have received a total of 996 billion guaraníes (about US$160 million) in guaranteed deposits. New President Pedro Alliana has pledged to support affected depositors as authorities work to restore confidence in the financial system.

Leadership and Depositors: Pedro Alliana was sworn in as president after the Senate impeached Santiago Peña over the Ueno Bank collapse. Alliana promised full compensation for affected customers and ordered immediate payments, prioritizing vulnerable savers. Banking Fallout: Ueno’s failure has left nearly 3 million people unable to access their accounts, while Paraguay’s deposit guarantee fund has begun paying eligible customers. Restoring access and confidence in the financial system is now an urgent test for the new government. Legal and Regulatory Scrutiny: Peña was placed under house arrest and is due to face questioning over alleged breach of trust, influence peddling and misuse of funds; he denies wrongdoing. Prosecutors have also sought the arrest of former central bank chief Carlos Carvallo as investigations examine the bank’s collapse and regulatory oversight.

Ueno Depositor Payments: Paraguay’s central bank has begun paying guarantees of up to 10 million guaraníes to eligible Ueno customers with accounts at other banks, after the lender’s failure blocked access to funds for nearly three million people. Impeachment and Investigation: The Senate rejected President Santiago Peña’s request for 72 more hours to prepare his defense. Peña missed the hearing, and lawmakers continued proceedings; prosecutors have also opened criminal investigations linked to the bank’s collapse. Congress has not accepted his resignation, leaving his political future unresolved. Poultry Exports: Paraguayan poultry export revenue rose 76% in the first ten months of 2026, with shipments up 55%, helping cushion declines in other meat exports.

Banking Crisis: Paraguay’s central bank placed Ueno Bank into resolution after finding a severe capital shortfall, leaving about 3 million customers unable to access their accounts. The lender also held hundreds of millions of dollars in public and pension funds. Political Fallout: President Santiago Peña offered to resign, but Congress did not accept the resignation after a session lost quorum. The lower house voted 78–0 to impeach him, and the Senate is proceeding with a trial; prosecutors have opened investigations into the bank’s collapse and the handling of public funds. Peña, who held shares in Ueno’s parent group until 2025, denies wrongdoing and says he will defend himself. Market Impact: Paraguay’s guaraní fell nearly 5% against the dollar and sovereign bonds slid as the turmoil rattled investor confidence. The repayment of depositors remains unresolved.

Political Fallout: President Santiago Peña submitted his resignation Thursday as the Ueno Bank crisis fueled protests and allegations of conflicts of interest. Minutes later, the Chamber of Deputies voted unanimously to advance impeachment proceedings; the Senate must decide whether to accept his resignation or continue the process. Vice President Pedro Alliana is expected to succeed him. Banking Crisis: The central bank placed Ueno into resolution after its solvency ratio fell below half the legal minimum, freezing access to accounts for millions of customers. The lender held an estimated $800 million to $850 million in public funds, including pension money. Depositor Relief: Lawmakers approved a measure allowing eligible customers to receive an advance of up to 40 minimum wages within 24 hours, but it still requires approval by the lower house.

Banking Crisis: Paraguay’s central bank put Ueno Bank into resolution after its solvency ratio fell below half the legal minimum, freezing accounts for nearly 3 million customers—about 60% of adults—and disrupting businesses and pension payments. The bank held up to $850 million in public funds. Regulators say deposits are protected up to roughly $38,000 per customer, with initial payments of up to ₲10 million expected by Friday. Political Fallout: Opposition lawmakers filed an impeachment motion against President Santiago Peña, citing alleged conflicts of interest and mishandling of the crisis. Central bank chief Carlos Carvallo resigned, and other board departures have raised concerns about the regulator’s ability to function. Investor Confidence: The turmoil puts Paraguay’s reputation as a destination for foreign capital under pressure, following record net FDI of $1.15 billion in 2025.

Banking Crisis: Paraguay’s central bank placed Ueno Bank under resolution after its solvency ratio fell below half the legal minimum, freezing services for about 3 million customers and putting more than US$800 million in public funds at risk. The lender’s political ties drew scrutiny; prosecutors ordered arrests of eight people, and Central Bank President Carlos Carvallo submitted his resignation. The regulator plans initial payments of up to ₲10 million per customer, prioritizing small savers. Foreign Investment: Paraguay recorded a net US$1.15 billion in foreign direct investment in 2025, up 3% year over year and the highest since records began in 2008. Infrastructure: An IDB report estimates the country needs US$15.18 billion by 2030 for transport, water and sanitation, electricity and telecommunications, with transport accounting for the largest share.

Banking Crisis: Paraguay’s central bank placed Ueno Bank into resolution after its solvency ratio fell below half the legal minimum, leaving about 3 million customers and more than US$800 million in public funds exposed. Central bank chief Carlos Carvallo resigned at President Santiago Peña’s request as prosecutors sought a criminal investigation into the bank’s oversight and political ties. Infrastructure Investment: Paraguay needs US$15.18 billion by 2030 to address gaps in transport, water and sanitation, electricity and telecommunications, according to the IDB; transport alone requires US$6.17 billion. Investment and Migration: Residency applications hit a record 49,538 in the first nine months of 2026, surpassing all of 2025. Separately, IFC-backed financing will help agribusiness Agrofértil expand farm lending and agricultural technology. Mining: Uranium One has begun exploration at its Yuty project in southeastern Paraguay, assessing historical data and uranium indications. Trade: The Mercosur-Singapore free-trade agreement is now in force with all four founding bloc members, including Paraguay, and provides for tariff reductions on about 96% of products over up to 15 years.

Banking: Paraguay’s central bank placed Ueno Bank into resolution after finding its solvency ratio had fallen below half the legal minimum. The lender has about 3 million customers and manages up to US$850 million in public funds, including US$380 million from state pension and health fund IPS. Customers reported being unable to access accounts, while Central Bank President Carlos Carvallo submitted his resignation but said he would stay through the process. Infrastructure: Paraguay needs US$15.18 billion in investment by 2030 to address gaps in transport, water and sanitation, electricity, and telecommunications, an IDB report says. Transport accounts for the largest share at US$6.17 billion. Investment Climate: Residency applications reached a record 49,538 from January to September, already exceeding the full-year 2025 total; Brazilians led the demand. Trade: The Mercosur-Singapore trade pact is now in force with all four founding members, including Paraguay. It provides for tariff cuts on about 96% of products over up to 15 years and covers investment, services, digital trade, and procurement. Agriculture Finance: IFC is backing Agrofértil to expand farm financing and agricultural technology in Paraguay.

Trade: The Mercosur-Singapore trade pact is now in force with all four founding members, including Paraguay. It covers goods, services and investment, with Mercosur set to remove tariffs on about 96% of product lines over up to 15 years. Agriculture Finance: The IFC is backing Agrofértil to expand pre-harvest financing, farm inputs and digital agriculture tools, with small and midsize producers among the priorities. AI Investment: Paraguay has joined the U.S.-led Pax Silica initiative focused on AI supply chains, aligning the country with efforts to develop the sector. Beef Exports: U.S. tariff relief for beef from Paraguay, Argentina and Brazil has stirred concern among American ranchers after cattle prices fell, underscoring the trade-offs around expanded South American access to the U.S. market.

Trade: The Mercosur–Singapore free-trade agreement took effect with Argentina on Nov. 1, completing its rollout across all four founding Mercosur members, including Paraguay. The pact covers goods, services, investment and digital trade, with tariffs on about 96% of products set to fall over as long as 15 years. Agriculture Finance: The IFC is backing Paraguayan agribusiness Agrofértil to widen access to pre-harvest loans, farm inputs and digital tools that combine climate and agronomic data. The expansion targets small and midsize farmers in a sector that accounts for 18% of national employment. AI Supply Chains: Paraguay has joined a US-led initiative focused on AI supply chains, a move that could strengthen its role in the emerging technology ecosystem. Beef Exports: US tariff relief for beef from Paraguay, Brazil and Argentina has unsettled American ranchers as auction prices fell. The shift highlights growing competition for Paraguayan exporters in a tight global beef market.

Trade: The Mercosur–Singapore free trade agreement is now in force with all four founding members, including Paraguay. It will remove tariffs on about 96% of products over up to 15 years, opening new routes for trade and investment. Agriculture Finance: The IFC is backing Agrofértil to expand pre-harvest financing, farm inputs and digital agriculture tools, with small and midsize farmers among the priorities. Beef: Paraguay’s inclusion in US tariff relief for South American beef has rattled US ranchers as cattle prices fall, putting the trade move’s market effects in focus. Tourism: Paraguay joined Argentina, Bolivia, Chile and Uruguay in launching a shared Mercosur tourism portal, promoting destinations across the region.

Trade: The Mercosur-Singapore trade pact entered into force between Singapore and Argentina on Nov. 1, completing its rollout with the bloc’s four founding members. It phases out tariffs on about 96% of products over as long as 15 years, opening opportunities in agriculture, energy, logistics and services. Agriculture: The IFC is backing Paraguayan agribusiness Agrofértil to expand pre-harvest financing, farm-input access and digital tools that combine climate and agronomic data. The company operates more than 30 regional centres and serves small and medium-sized farmers. Beef: U.S. tariff cuts on imports from Paraguay, Argentina and Brazil have rattled American cattle producers as auction prices fell, highlighting the growing impact of South American suppliers on U.S. markets. Property: A forum in Asunción spotlighted short-term rentals as an investment opportunity, with local developers and operators discussing yields, financing and risks.

Farm Finance: The IFC is financing Agrofértil to widen pre-harvest credit and access to farm inputs in Paraguay, with support for digital tools that combine climate and agronomic data. Asunción Property: A local investment forum highlighted short-term rentals as an expanding market; developer ProInvest says it has sold 1,009 apartments across five projects, with buyers from 30 countries. AI Supply Chains: Paraguay has joined the US-led Pax Silica initiative, which aims to strengthen supply chains for AI infrastructure, semiconductors and critical minerals. Poultry Biosecurity: Synexis and regional partner Nieser are expanding continuous pathogen-control technology to poultry producers in Paraguay, Argentina and Uruguay, aiming to reduce risks that can disrupt production and exports.

Agricultural Finance: The IFC is backing Agrofértil to widen pre-harvest financing and farm-input access, with digital tools combining climate and agronomic data to help producers manage risk and improve yields. Small and medium-sized farmers are a priority. Property Investment: A forum in Asunción examined returns and risks in the city’s growing Airbnb market, as new apartment projects attract investors from Paraguay and abroad. Technology Supply Chains: Paraguay’s entry into the US-led Pax Silica initiative puts it in a coalition focused on AI supply chains, including critical minerals, energy and infrastructure. Regional Trade: Paraguay was among the first to congratulate Brazil’s Lula on his re-election. Its reliance on Brazil as a major trading partner gives Asunción a strong economic reason to maintain close ties.