Asunción, Paraguay — Customers lined up outside closed Ueno Bank branches after Paraguay’s central bank stepped in to resolve a capital shortfall. Among them were pensioners who receive state benefits through the bank. For those unable to use their accounts, the urgent question is when they can get their money. Reuters reports that Ueno serves about three million customers.
What deposit protection covers
The Banco Central del Paraguay announced on November 3 that it had begun resolution proceedings. It said adjustments to Ueno’s financial statements had left its solvency ratio below half the required minimum. Officials will assess the bank’s assets as they work to protect depositors.
The guarantee covers up to ₲228.3 million per depositor at the bank. Multiple accounts do not each get a separate limit. Coverage does not mean customers can withdraw funds immediately, and the central bank says it will pursue other measures for balances above that limit.
The Associated Press reported that Ueno held roughly US$380 million from the state pension and health fund. That is money held at the bank, not a confirmed loss. The central bank describes the intervention as an isolated case and says it will issue instructions through its official channels.
Scrutiny turns to the bank’s political ties
Central bank chief Carlos Carvallo submitted his resignation at President Santiago Peña’s request, Reuters reported. Carvallo previously led Ueno, and Peña had a business relationship with the bank’s owner, Grupo Vázquez, until March 2025.
Paraguayan prosecutors confirmed detentions as part of a criminal investigation. The inquiry is examining possible financial offences; the detentions do not establish guilt. Noticias Paraguay reported that depositors protested outside prosecutors’ offices in Asunción on November 4, calling for their money back.
Diario HOY reported that the central bank announced an initial payment of up to ₲10 million per depositor, with a timetable for remaining payments still to be set.
For customers, the next test is practical: when payments start, how much will be available at first, and what happens to balances above the guarantee.
Noticias Paraguay reports on the central bank’s intervention in this Spanish-language segment.
