The President of the Central Bank of Paraguay has announced his resignation following a crisis involving Ueno Bank

Página/12Party-alignedProgressiveNov 4

The collapse of Ueno Bank in Paraguay has triggered bank runs and violent protests in Asunción, where police clashed with depositors. The closure threatens the financial stability of the country's social security institute, whose funds were held by the institution. All members of the bank's board of directors have been detained in connection with the crisis. President Santiago Peña faced significant political pressure after delaying his first public address on the situation for nearly 12 hours. The incident has destabilized the administration and raised concerns about broader economic repercussions.

Bias read (Progressive): The headline explicitly frames the event as shaking the president, while the subhead emphasizes the leader's delay in responding and the detention of all executives, highlighting executive failure and accountability.

PerfilIndependentProgressiveNov 3

Carlos Carvallo, President of the Paraguayan Central Bank, submitted his resignation after regulators intervened in Ueno Bank due to concerns over its solvency. Although he signed the letter, Carvallo stated he would remain in office temporarily to ensure stability during the ongoing investigation into the commercial bank. The situation poses a significant challenge to the reputation of President Santiago Peña’s administration, which has previously dismissed media reports regarding Ueno Bank’s financial health while promoting Paraguay as a low-tax destination. Government deposits in Ueno Bank surged to approximately US$869 million since 2023, representing 29% of the bank's total deposits by late June. Regulators emphasized that this is an isolated case rather than a systemic crisis, guaranteeing deposits up to a specific limit per person. To restore confidence, Ueno Bank executives recently proposed a US$100 million recapitalization plan funded partly by its holding company and private investors.

Bias read (Progressive): The article highlights the conflict between the government and media, notes the president's dismissal of valid concerns, and emphasizes the threat to the administration's reputation, framing the event as a governance failure.