Paraguay seizes major digital bank tied to president, leaving millions of customers in limbo
Regulators cited solvency problems and irregular lending as they moved to protect depositors and arrange payouts for about 3 million customers.
- On Monday, The Central Bank of Paraguay placed Ueno Bank into resolution after its solvency ratio fell below half the legal minimum, aiming to protect customers' savings and prevent broader financial disruption.
- Soon after his inauguration, President Santiago appointed Carlos Carvallo, Ueno's then chief, to lead The Central Bank, a move critics denounced as a conflict of interest amid concerns over loans to owner-linked companies.
- Ueno Bank manages $800 million to $850 million in public money for about 3 million customers, roughly 60% of the South American population, including about $380 million invested by IPS.
- Gladys Vera, the IPS finance manager, confirmed retirees will be paid as usual this month and the fund will take legal action to recover its investment; Each depositor is guaranteed up to about $38,000.
- Unlike bankruptcy proceedings, resolution allows The Central Bank to transfer deposits to stable banks while officials determine the bank's worth and investigate who was responsible for the financial deterioration.
102 Articles
102 Articles
Paraguay takes over Ueno Bank, with 3 million customers, and freezes its deposits
Paraguay’s Central Bank on Tuesday took over Ueno Bank, one of the country’s largest banks, after its solvency ratio fell below 50% of the legal minimum, and froze all its assets and liabilities, including the savings of some 3 million customers and more than US$800 million in public funds. The bank immediately suspended all its services.
The entity had about three million clients and managed about $850 million in public resources. Six of its directors were placed in police custody, while the opposition announced that it will promote a political trial against the president and his vice president.
Scandal by Ueno Bank Splashes the Government of Paraguay: A Resignation, Riots and Millions on Alert
The president of the Central Bank of Paraguay (BCP), Carlos Carvallo, resigned this Tuesday in his position, in the middle of the ...
Paraguay's central bank chief resigns at president's request as digital lender crisis deepens
ASUNCION, Nov 3 - Paraguay's central bank head submitted his resignation on Tuesday at President Santiago Peña's request, as authorities launched resolution proceedings for digital lender ueno. Read more at straitstimes.com.
Paraguay’s central bank chief resigns at president’s request as digital lender crisis deepens
By Daniela Desantis ASUNCION, Nov 3 (Reuters) - Paraguay's central bank head submitted his resignation on Tuesday at President Santiago Peña's request, as authorities launched resolution proceedings for digital lender ueno. The case has piled pressure ...
On Tuesday, November 3, the Central Bank of Paraguay took control of an important bank linked to the president of the country Santiago Pena, depriving millions of savers of immediate access to their money.
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