Paraguayan Teachers Strike: Demand for $60 Million Pension Return
Educators walked out of classrooms after Ueno Bank's collapse froze assets and led to President Santiago Peña's removal.
By Renata Mehta ·
Public schoolteachers in Paraguay walked off their jobs on Monday, joining street protests in several cities. The strike follows the recent collapse of Ueno Bank, an event that froze the financial assets of millions of residents and triggered the removal of the country's president.
Silvio Piris, the head of the Federation of Paraguayan Educators, stated that the primary concern for the teaching staff is the fate of approximately $60 million in pension funds. These funds were deposited with Ueno before the government intervened in the institution last week. Piris told Channel 9, "We want the return of that money to be a priority."
The financial shock extended far beyond the education sector. More than 3 million individuals found their bank accounts locked on Tuesday when the government took control of Ueno. The intervention also affected government-owned accounts and pension funds, creating widespread uncertainty regarding the stability of the nation's financial system.
The bank's failure directly led to the downfall of President Santiago Peña. Legislators accused him of using his political position to direct hundreds of millions of dollars in public funds into Ueno. They also claimed regulators ignored risky insider lending while he held power. Peña was formally charged on Saturday with two crimes related to the collapse.
Prosecutors announced that Peña faces charges for breach of trust and administration for personal gain. If found guilty, he could face up to 20 years in prison. He is currently held at a military base while an anti-corruption probe continues. The investigation also involves the former head of Paraguay's central bank. Vice President Pedro Alliana has stepped in to replace Peña.
Impeachment documents allege that Peña held a stake in Ueno's holding company, which he sold under pressure last year. They further claim he appointed a former Ueno executive to lead the central bank, which regulated the institution. Lawmakers also cited his decision to allow the state pension fund to deposit $355 million at the bank, a figure they say exceeded legal limits. Peña has denied any wrongdoing.
The Central Bank began returning deposits to account holders last week. By Saturday, the institution reported that it had partially or fully refunded more than 1.2 million Ueno customers. Standard bank deposits in Paraguay carry insurance coverage of about $37,000. The currency, the guarani, has dropped roughly 8% against the U.S. dollar since the intervention began.
