Paraguay’s central bank placed the digital bank Ueno under supervision after the financial regulator said it had less than half the required minimum capital and insufficient funds to meet immediate obligations. Ueno was also suspected of having granted high-risk loans, including to people connected to the bank without adequate guarantees. Eight bankers were arrested, while an investigation was examining possible criminal offences and the bank’s remaining assets. The investigation was expected to take up to 15 days.

All Ueno balances and transactions were blocked, leaving about three million customers unable to access their money. The bank also held up to €750 million belonging to public institutions, including more than €350 million in pension funds. Opposition figures demanded President Santiago Peña’s resignation, citing his alleged ties to Ueno and concerns about conflicts of interest and financial supervision. Hundreds of people protested in Asunción. The central bank said a guarantee fund covered assets of up to €17,000, less any debts, but the position of customers with larger balances remained unclear.