Paraguay Central Bank Returns $335 Million to Ueno Bank Clients After Intervention

Paraguay's central bank intervened in Ueno Bank on November 3 after a solvency crisis that contributed to President Santiago Peña's downfall. The digital bank had accumulated around $2.8 billion in deposits, with 71 percent belonging to the private sector and the rest mainly to the public sector, especially the Social Security Institute.

Authorities have returned about $335 million to slightly more than 1.7 million depositors by Monday. The central bank said it had already paid roughly $158 million to clients, covering 64 percent of the 1.87 million accounts with balances.

“We already paid a first batch of 722 thousand accounts and yesterday we paid the second, of 475 thousand. There are now 669,336 accounts remaining.”

A first batch reached 722,000 accounts and a second batch 475,000 accounts, leaving 669,336 accounts still awaiting restitution. Clients without loans or other obligations to Ueno were paid first, though some could not collect because of account blocks.

Starting Monday, the central bank plans a new payment stage that will include clients who owe money to the institution. Those blocked cases may be included on Monday or, at the latest, Tuesday.

Deposits will be paid in guaranis, including accounts originally denominated in dollars. The deposit guarantee fund protects up to about $37,000 per depositor and bank, and an emergency law authorized advances of up to $19,000 within one week.

New President Pedro Alliana took office after the Senate removed Peña by 44 votes in the Ueno Bank scandal. The former president remained under house custody.