Paraguay seizes major digital bank tied to president, leaving millions of customers in limbo
- 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.
236 Articles
236 Articles
Santiago Peña is the president of Paraguay in the midst of the financial crisis that could remove him from his mandate until 2028.
The seizure of Ueno Bank, which has approximately 3 million customers in the South American country of Paraguay, has turned into a major political crisis. The fact that the bank held over $850 million (approximately 42.5 billion TL) in public deposits and President Santiago Peña's past partnership with the bank has mobilized the opposition. The public is in the streets demanding Peña's removal from office.
The Central Bank of Paraguay took control of an important digital creditor on Tuesday morning, who has close links with the country's president, Santiago Peña, throwing savings into uncertainty...
Paraguay has plunged into a major financial and political crisis after the country's Central Bank placed the digital bank Ueno under supervision earlier this week. As a result, millions of Paraguayans are unable to access their money. The opposition is furious and is demanding the resignation of President Peña due to his ties to the bank. The bank has been placed under supervision due to serious financial problems. According to the financial reg…
Around 60 percent of the adult population of Paraguay are customers at the Digitalbank Ueno. The failure of the institute panics many people.
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