Paraguay Begins Advance Repayments to Ueno Bank Depositors After Seizure

ASUNCIÓN — Paraguay has begun issuing advance payments to Ueno Bank depositors locked out of their accounts following the institution’s abrupt takeover earlier this week, a Central Bank official told AFP on Friday.

The Tuesday seizure of Ueno Bank plunged the South American nation into turmoil, freezing the accounts of nearly half the country’s population.

Widespread protests have shaken Asunción, where President Santiago Peña has stepped down but remains subject to impeachment proceedings tied to the collapse of a bank connected to his administration.

Advance disbursements to affected account holders began Thursday afternoon, José Maciel of the Central Bank’s Deposit Guarantee Fund told AFP.

The initial phase covers clients holding deposits of up to approximately $1,600, provided they have no outstanding loans and maintain an account at another Paraguayan bank or financial institution, Maciel said.

“Further beneficiaries will be announced progressively throughout the payment process,” Maciel said, without disclosing how many individuals have received funds to date.

The Central Bank assumed control of Ueno over concerns regarding the institution’s solvency.

Ueno originated as a small fintech firm with a digital-first approach that drew numerous low-income customers.

It quickly evolved into a major financial institution managing state pensions and accounts belonging to multiple government entities.

Opposition figures have accused Peña of a conflict of interest, a charge he denies.

Until last year, the U.S.-backed leader held a stake in the group that controlled Ueno.

Source link