Bank That Counts 60% of One Nation as Customers Just Failed

Key Points:

• Paraguay's central bank seized Ueno Bank, a major digital lender with close ties to President Santiago Peña, after its solvency ratio fell below half the legal minimum, triggering a political crisis and jeopardizing investor confidence.
• Ueno Bank serves about 3 million customers, roughly 60% of Paraguay's adult population, and manages $800-$850 million in public funds, including $380 million from the state pension and health fund.
• Prosecutors have arrested eight people, including Ueno's president and CEO, on charges related to breach of trust, with two more directors detained subsequently.
• President Peña requested the resignation of the central bank chief and pushed for expedited legislation to ensure depositors receive payouts and public funds are returned, pledging accountability for those responsible.
• Most depositors are protected by deposit insurance guaranteeing up to $38,000 per person, covering about 97% of Ueno's customers, though many remain locked out of their accounts and anxious about their savings.