Paraguay seizes major digital bank tied to president, leaving millions of customers in limbo
Regulators said the intervention will protect insured savers as they wind down the lender and investigate irregular lending tied to owners.
- 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.
54 Articles
54 Articles
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.
The president of the agency, Carlos Carvallo, announced his resignation after the intervention of Ueno Bank, with close ties with the head of state
The Ueno Bank, which administers millions of pensions and other state funds, was intervened because of a serious capital shortfall.
The Central Bank intervened Ueno Bank and froze the funds of about 3 million customers after tracing millionaire loans to companies of the group that owns the institution
(Mexico City = Yonhap News) Correspondent Song Gwang-ho = The Central Bank of Paraguay has initiated liquidation procedures for 'Hueno,' a major digital bank facing a financial crisis...
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