Peña promises to reimburse Ueno Bank customers and names new head of Paraguay's Central Bank
Payment depends on a law in Congress; eight directors of the digital bank were arrested, and the central bank chief resigned amid criticism of oversight.
Translated from the Portuguese original by the Panorama newsroom. Read in Portuguese
Summary written by the Panorama newsroom from the sources listed below. Facts are attributed to the original publications.
Paraguay's president, Santiago Peña, announced on Wednesday (4) measures to return money to customers of the digital bank Ueno, whose dissolution triggered a crisis in the country, g1 reported. In a post on X, Peña said payments could begin this week, provided Congress approves a law authorizing the measure, and said the proposal would cover 98% of savers.
Peña also sent the Senate the nomination of economist Raúl Vera Bogado to head the Central Bank of Paraguay, as well as Pedro Acosta and Hetzel González for two board seats. The change follows the resignation of Carlos Carvallo on Tuesday (3). Carvallo ran Ueno until August 2023, and lawmakers had been questioning the central bank's supervision of the institution.
According to Paraguayan newspaper La Nación, cited by g1, eight Ueno directors were arrested during the intervention process and taken to testify before the Public Prosecutor's Office, which is investigating suspected fraud, breach of trust and other practices that may have led to the bank's collapse.
Paraguay's largest credit card issuer, Ueno saw its solvency ratio fall to less than half the required minimum after adjustments to its balance sheets. Majority-controlled by Grupo Vázquez, it manages about US$ 850 million in public funds. On Tuesday, many customers, including retirees who receive benefits through the bank, found its branches closed.
The crisis sparked protests and increased pressure on the government, since Peña was a partner in Ueno's controlling group until March 2025. The president said the country's financial system is sound and that those responsible for irregularities will answer to the courts "without exception."