Paraguayan banking scandal hits football, with at least 10 players affected

The financial and political crisis in Paraguay over the closure of its biggest digital bank, Ueno, is set to spill over into football, with at least 10 local players and even South America’s governing body for the sport, CONMEBOL, among those affected.

On Monday, Paraguay’s Central Bank took control of Ueno Bank, a fast-growing digital lender with close ties to President Santiago Peña, freezing the funds of nearly 3 million customers after finding that its solvency ratio had fallen below the legal minimum.

Almost half the population of the country has been affected, among them at least 10 members of Paraguay’s men’s national football team, which is sponsored by the digital bank.

The players are now considering legal action.

‘Football has been lied to’ Lawyer Rodrigo Codas told local news channel NPY that several players, many of whom play for foreign clubs, had kept their savings with Ueno Bank.

He said that while “97% of the bank’s depositors” would recover their funds through the Central Bank’s deposit reimbursement guarantee, most players had deposits exceeding the 228 million guaraníes (around US$38,000) reimbursement limit per depositor, meaning they stood to lose a substantial portion of their money.

“This is why they are among those most affected by this situation,” Codas said.

He added that 10 players had so far joined a potential collective legal complaint, but did not disclose their names or when it would be filed.

“Football has been lied to and robbed,” Codas said. “It’s a pretty tough day for the entire nation. The bank’s president used to go into the Paraguayan national team’s locker room.”

The Paraguayan men’s national team is coming off a remarkable performance at the 2026 World Cup, where, against all odds, it qualified for the knockout stages before eliminating tournament favorite Germany in a penalty shootout.

Paraguayan Football Association loses sponsor The Paraguayan Football Association (APF, in Spanish) issued a statement on Wednesday. In 2023, the organization and Ueno Bank signed a US$12 million sponsorship agreement that ran through August 2027.

In the statement, the APF expressed its “deep concern over the difficult situation facing numerous Paraguayan families.” It went on to extend its “solidarity and support to all those affected, especially those families currently facing moments of uncertainty and distress.”

On Wednesday, Ueno Bank branding was removed from Defensores del Chaco Stadium, which is owned by the APF and hosts most of the national team’s games. The bank’s branding was also removed from stadiums hosting upcoming Paraguayan first-division matches.

According to Paraguayan outlet ABC, the APF is reviewing the case to determine what legal actions to take regarding the sponsorship deal.

“We are already working on the necessary actions to support those affected and contribute to the search for concrete solutions, with the responsibility and sensitivity this moment demands. Our commitment is to act and remain close to those who need it most today,” the statement added.

CONMEBOL also hit The crisis has also affected South America’s governing body for football, CONMEBOL, which is headquartered in the Paraguayan capital, Asunción.

According to reports by Argentine newspaper La Nación, the organization is listed as a depositor with 85.470 million guaraníes (around US$15 million).

Despite concerns about the upcoming Copa Libertadores and Copa Sudamericana tournaments, CONMEBOL confirmed to Argentine media outlets that neither the organization of the matches nor the prize money earmarked for winning clubs is at risk.