From MercoPress · · 1m 10s
Paraguay Takes Over Ueno Bank
Paraguay freezes Ueno Bank deposits after taking control of its 3 million customers.
In brief
Paraguay freezes Ueno Bank deposits after taking control of its 3 million customers. Paraguay's Central Bank took over Ueno Bank with 3 million customers and froze deposits following a solvency crisis. Originally reported by MercoPress.
Paraguay takes over Ueno Bank
Paraguay's Central Bank took over Ueno Bank, one of the country's largest banks, after its solvency ratio fell below 50% of the legal minimum.
Freezes deposits of 3 million customers
The bank immediately suspended all services and froze all assets and liabilities, including savings of some 3 million customers.
Ueno Bank's public funds
Ueno manages public funds including about US$380 million from the Social Security Institute, which runs pensions and public healthcare.
Deposit Guarantee Fund
The Deposit Guarantee Fund covers savings of up to 75 minimum wages, about 228 million guaranis or roughly US$38,200 per person.
Central Bank President's statement
Central Bank President Carlos Carvallo described the situation as an isolated, one-off event and said the financial system remains sound and healthy.
Political fallout
Vice President Pedro Alliana paused his presidential bid, and the opposition pushed for impeachment of President Santiago Peña and Alliana.
The bottom line
Paraguay's Central Bank took over Ueno Bank with 3 million customers and froze deposits following a solvency crisis.
