The Central Bank of Paraguay today took control of a bank that was previously associated with the country's president, Santiago Pena. This decision immediately resulted in millions of depositors losing direct access to their funds.
Ueno Bank, which faced insolvency, was transferred under the supervision of the Central Bank with the aim of 'protecting depositors and the stability of the financial system,' according to an official statement from the central bank.
Santiago Pena, who has been president since 2023, owned shares in the managing company (holding) of this banking institution until 2025.
Ueno Bank is one of the most popular banks in the country due to its digital strategy. The state Social Security Institute (IPS) invested $380 million in it, and it also holds deposits for 32 thousand pensioners.
The decision was announced following requests from experts and members of parliament regarding the status of this organization, which also holds funds of state institutions such as the National Electricity Administration (Ande) and the Itaipu binational dam.
In its statement, the central bank reported that it unanimously decided to initiate the 'Ueno Bank resolution procedure' because it was established that its solvency ratio had fallen below the minimum required 50%.
This procedure involves appointing inspectors from the Banking Superintendency and activating the mechanisms of the Deposit Guarantee Fund (FGD), which covers up to 75 minimum wages [228.3 million guaraníes ($38,622)] 'for a natural or legal person and for a financial institution,' as detailed in the official announcement.
