Why is Paraguay facing a banking and political crisis?

Ueno collapse raises questions about state influence and accountability.

Paraguay is engulfed in political turmoil after a banking scandal put its president and major institutions under scrutiny.

At the centre is Ueno, a fast-growing digital lender, whose collapse has left millions of people unable to access their savings. But the fallout goes beyond the banking sector.

Congress has rejected President Santiago Pena’s resignation and is pressing ahead with impeachment proceedings. He’s accused of negligence and being complicit in an alleged cover-up of the bank’s insolvency.

So, what went wrong? Were regulators compromised by political influence? And who should be held accountable?