From Buenos Aires Herald · Buenos Aires Herald · · 1m
Ueno Bank Scandal Threatens Paraguay
Paraguay's financial crisis deepens as Ueno Bank collapses under Central Bank intervention.
In brief
Paraguay's financial crisis deepens as Ueno Bank collapses under Central Bank intervention. Paraguay's Central Bank seized Ueno Bank, a major digital lender with 2.9 million customers, after its solvency ratio fell below 50% of legal minimum, threatening President Peña's presidency and public funds. Originally…
Ueno Bank Seized
Paraguay's Central Bank took control of Ueno Bank, a fast-growing digital lender with close ties to President Santiago Peña.
Funds Frozen
The move froze nearly three million customers' funds and raised questions about government oversight of the financial system.
Solvency Crisis
The Central Bank suspended Ueno Bank's operations after finding its solvency ratio fell below 50% of the legal minimum.
Public Funds at Risk
Ueno manages approximately US$850 million in public funds, including pensioner benefits and social security investments.
Leadership Fallout
Eight senior executives were arrested, including Ueno's CEO and founder, Miguel Vázquez.
Presidential Pressure
President Peña resigned the Central Bank head and agreed to a bill for immediate depositor payouts using the Deposit Guarantee Fund.
The headline
Paraguay's Central Bank seized Ueno Bank, a major digital lender with 2.9 million customers, after its solvency ratio fell below 50% of legal minimum, threatening President Peña's presidency and public funds.
