Digital bank’s collapse topples Paraguay president in corruption probe

Ueno Bank, a Paraguayan digital lender that grew to three million customers and managed approximately $800 million in public funds, sparked a major corruption scandal after investigations revealed $146 million in loans to companies linked to bank owners. Former President Santiago Peña, who held equity stakes in the controlling group until 2025, faced arrest as the case exposed vulnerabilities in banking sectors dominated by few players.

Sources: Israel Hayom

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