Overview
- The Banco Central placed Ueno Bank into resolution and suspended its services after finding its solvency ratio below regulatory minimums and large loans to companies linked to the controlling group, leaving roughly 2.9 million customers temporarily unable to access accounts.
- Congress approved and Peña signed an emergency law allowing advances from the Deposit Guarantee Fund of up to 40 minimum wages per depositor to speed partial repayment while the formal resolution continues.
- Prosecutors have indicted and in some cases detained multiple Ueno executives on charges that include misuse of funds, fraud and breach of trust, and judicial investigations are expanding into related transfers and accounting adjustments.
- Markets reacted sharply: the guaraní fell against the dollar and country risk measures rose, and the central bank president Carlos Carvallo resigned and was replaced during the crisis.
- Vice President Pedro Alliana is expected to assume the presidency, and the episode raises broader questions about rapid fintech‑style bank expansion, concentration of public deposits (about USD 850 million at Ueno) and confidence in Paraguay’s supervision and political ties.