Paraguay, the central bank starts the liquidation of Ueno Bank

Paraguay's central bank has started the resolution process of Ueno Bank, one of the country's main digital institutions, after finding a deterioration in its financial situation. The decision, adopted unanimously on November 2 and announced today, is linked to the collapse of the solvency ratio, which fell to less than half the regulatory minimum.

The procedure involves blocking accounts, cards, applications and other services, while the authorities proceed to verify assets and liabilities with a view to transferring deposits to other institutions. The crisis also involves around 380 million dollars invested in the bank by the Social Security Institute (IPS), which however guarantees the continuity of payments to around 32,000 pensioners.

Factors under scrutiny include loans granted to companies linked to the parent group and some irregularities in accounting documentation. The affair also opens a political front for President Santiago Peña, who in the past had held shares in the holding company that owns the bank.