The Central Bank of Paraguay began paying the first deposit guarantee advances to clients of Ueno Bank on Thursday, the central bank confirmed to AFP on Friday. The intervention left about 3 million depositors without access to their money.
First stage covers smaller deposits
The first stage covers clients with deposits of up to R$8.9 thousand. Payments began in the afternoon, according to José Maciel, director of the administrative unit of the Deposit Guarantee Fund at the central bank.
“The process of paying the guarantee advances to Ueno Bank depositors began this afternoon,” Maciel said. The first stage excludes people linked to the bank or those with debts to it. Payments to other groups will be announced later.
Bank taken over after solvency drop
Ueno Bank, Paraguay’s largest digital bank and main issuer of credit cards, was intervened by the central bank after its solvency index fell below half the regulatory minimum following balance-sheet adjustments. The central bank and President Santiago Peña said the case is isolated.
Carlos Carvallo resigned as central bank president on Tuesday, and President Peña announced on Thursday that he too had resigned, with the vice president taking office. The Superintendency of Banks said it would appoint auditors to verify Ueno’s assets.
Also Read
The bank administered public funds of about $850 million, including funds of the Instituto de Previsão Social. Eight people were ordered arrested, and 27 were investigated for suspected fraud. Persons linked to the bank have 24 hours to return funds they received.
Related: Paraguay closes Ueno Bank as solvency falls below 50% · Paraguay's central bank moves to resolve Ueno Bank
Source: Central Bank of Paraguay
