Paraguay’s Ueno Bank collapses and central bank partially refunds all eligible depositors
The central bank said that 1.812348 people had withdrawn some of their deposits. Former President Pena was impeached and detained pending trial.
Quick Look
- After Paraguay’s digital bank Ueno Bank collapsed last week, the central bank pointed out that customers who were eligible for claims from the Deposit Protection Fund have gradually received partial refunds, with a total of 1,812,348 people refunded.
- Former President Penya was impeached and detained pending trial for his ties to the bank.
- The bank once held more than $800 million in public funds, and most of the money has not been recovered.
AI-generated summary
Why It Matters
Ueno Bank was taken over by the Central Bank of Paraguay on November 3 after facing serious solvency doubts. The bank was originally a small financial technology company. In just three years, it grew rapidly and began to undertake national pension business and multiple government agency accounts. It once held more than 800 million US dollars in public funds. Former President Penia used to hold shares in Ueno Bank Holdings, which he sold until last year. He was impeached on November 6 and is currently in custody awaiting trial.
(Central News Agency, Asunción, comprehensive foreign news report on the 11th) The Central Bank of Paraguay pointed out today that after the collapse of digital bank Ueno Bank last week, eligible customers whose accounts were frozen and unable to withdraw their deposits have gradually received partial refunds.
Agence France-Presse reported that the takeover of Ueno Bank on November 3 triggered large-scale protests and demonstrations across Paraguay, leading to the impeachment and arrest of former President Santiago Pena, who was associated with the bank.
Pedro Acosta, an official at the Central Bank of Paraguay, said that "100 percent" of all bank customers who are eligible for claims from the Deposit Protection Fund have received at least part of their deposits back.
The central bank pointed out that this time it has refunded part of the money to 1,812,348 people.
However, senior executives and shareholders of Ueno Bank are not eligible for claims from the Deposit Protection Fund.
However, most of the funds currently held by Ueno Bank have yet to be recovered.
The financial crisis has affected more people than Ueno Bank's direct customers. The Paraguayan digital bank once held more than $800 million in public funds.
Ueno Bank was taken over when it faced serious solvency doubts. It was initially a small financial technology company that adopted an operating model focused on digital services and attracted many low-income groups as customers.
In just three years, Ueno Bank quickly became an important player in the financial industry and began to undertake national pension services and accounts for multiple government agencies.
Pena was impeached on November 6 and is currently in custody awaiting trial. He used to hold shares in Ueno Bank Holdings, which he sold until last year.
What to Watch
AI outlook — possibilities, not facts
Paraguayan authorities will launch further investigation and legal prosecution of Ueno Bank senior executives and shareholders
Likely · Within weeks
Former President Pena’s impeachment case and detention awaiting trial will enter the judicial process
Likely · Within weeks
Open Questions
- When will most of the bank funds be recovered?
- What will happen to senior executives and shareholders who are not eligible for claims from the Deposit Protection Fund?
- What is the specific evidence involved in Pena's case and the progress of the subsequent trial?
