Paraguay Seizes Major Digital Bank Tied to President, Leaving Millions of Customers in Limbo – WTOP News
- 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.
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32 Articles
Paraguay seizes major digital bank tied to president, leaving millions of customers in limbo – WTOP News
ASUNCIÓN, Paraguay (AP) — Paraguay’s central bank seized a major digital lender with close ties to President Santiago Peña early Tuesday, throwing the savings of millions of customers and hundreds of millions of dollars in public funds into limbo. The central bank’s board voted unanimously Monday to put Ueno Bank into resolution after its solvency...
Asunción, Nov 3 (EFE).- The president of the Central Bank of Paraguay (BCP), Carlos Carvallo, informed this Tuesday that he presented his resignation, announcing the beginning of a procedure of resolution of the financial institution Ueno bank, although he clarified that he will continue in office, since the situation demands its permanence. «My resignation is signed, [...] The entry The president of the Paraguayan issuer resigns in the middle o…
Paraguay seizes major digital bank tied to president, leaving millions
ASUNCIÓN, Paraguay (AP) — Paraguay’s central bank seized a major digital lender with close ties to President Santiago Peña early Tuesday, throwing the savings of millions of customers and hundreds of millions of dollars in public funds
Paraguay Central Bank Intervenes in Ueno Bank on Solvency Fears
Paraguayan regulators intervened in Ueno Bank SA after concluding it was undercapitalized, triggering the resignation of the central bank chief and creating a political mess for President Santiago Peña.
OTP emphasized that they only appeared as financial investors in Paraguay's most significant financial institution.
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