Paraguay's Guarantee Fund Releases Payments to Ueno Bank Clients

The Central Bank of Paraguay has authorized the start of payouts to depositors of Ueno Bank. The initial phase focuses on clients with balances up to 10 million guaranis, which is approximately 8,900 Brazilian reais. Beneficiaries must be free of any debts with the bank and maintain an active account at another financial institution in the country.

Total coverage extends to deposits of up to 228 million guaranis, an amount equivalent to 203,000 Brazilian reais. The schedule for remaining groups of account holders will be released as legal proceedings advance. Individuals or legal entities linked to the bank's control are not eligible to receive these funds.

Ueno Bank was liquidated after the monetary authority identified solvency ratios below the regulatory limit. The institution managed approximately 850 million dollars, including funds from pension schemes. The asset freeze caused significant instability and long lines at local branches.

The Paraguayan political landscape has faced direct impacts due to President Santiago Peña's previous ties to the controlling group. The president announced his resignation following mounting pressure from the opposition and the ousting of the local Central Bank governor. The situation highlights vulnerabilities in the management of public and pension funds in the neighboring country.