Paraguay Moves to Reassure Ueno Depositors After Bank Collapse

Paraguay Moves to Reassure Ueno Depositors After Bank Collapse
Paraguay’s central bank says it has begun restoring access to funds for customers of Ueno Bank, framing the operation as a use of the country’s deposit-guarantee system after the digital lender was closed over worsening solvency indicators. The immediate effort has reached 1.2 million account holders, according to central bank figures reported after meetings between interim officials, the new president and the Economy Ministry.

The repayment programme has so far focused on deposits within the guaranteed ceiling. Customers with balances from 1 million to 10 million guaraníes were paid first, followed by those holding between 10 million and 228.3 million guaraníes—the maximum covered by the fund. About US$160 million has been transferred, the report said.

Officials present the fund as a safeguard designed to ensure depositors can recover money when a bank fails, broadly comparable to Brazil’s credit-guarantee mechanism. But the central issue has shifted from the initial payouts to the treatment of customers whose balances exceed the insured limit. Acting central bank president Pedro Acosta said the institution was continuing work to return money to those depositors as well.

The new government has adopted a more expansive public commitment. Economy and Finance Minister Óscar Lovera said President Pedro Alliana had ordered “the maximum effort to give answers” to people affected by the closure, while Alliana had previously promised full compensation for those harmed.

Pension payments are a separate practical test of that pledge. Of 90,000 retirees served by the social security institute, around 32,000 had received payments through Ueno Bank. Institute president Derlis León said monthly benefits and the annual extra payment would be made on 17 November, with transfers to accounts at eight other banks nearing completion.

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