Ueno Bank: 1.8 million customers received state-guaranteed advance payment in Paraguay
The BCP confirmed that 100% of savers covered by the state guarantee received an advance payment. The case has implicated former president Santiago Peña, who is detained and under investigation.
Over 644 million dollars returned to customers of intervened Ueno Bank
The Central Bank of Paraguay (BCP) reported on Wednesday that 100% of Ueno Bank customers protected by the state guarantee received an advance payment of their funds, following the entity's intervention due to financial solvency problems. According to El Deber, a total of 1,812,348 people recovered deposits amounting to 3.9 billion guaraníes, equivalent to approximately 644 million dollars.
Pedro Acosta, a member of the BCP's board, explained at a press conference that payment was completed for all savers with deposits of up to 40 minimum salaries—that is, approximately 121,760,000 guaraníes or just over 19,600 dollars at the current exchange rate. Wednesday marked the deadline established by an emergency law approved by the Paraguayan Congress to conclude these disbursements.
On Wednesday alone—the fifth and final instalment of the advance payment—approximately 29,988 customers recovered funds worth a combined 1.7 billion guaraníes, equivalent to 288 million dollars. All beneficiaries had outstanding loans with the institution deducted from their recoveries.
From next week onwards, the BCP will expand payments to reach the maximum threshold of 75 minimum salaries contemplated in the country's Deposit Guarantee Fund. That fund covers up to 228,300,000 guaraníes—approximately 36,790 dollars—per natural or legal person. It was not specified what will happen with customers whose deposits exceed that limit, including investment funds, large companies, state resources and pensions.
The intervention of Ueno Bank resulted in a political crisis of major proportions. Former president Santiago Peña was removed through impeachment for "poor performance of duties" and remains detained as part of the investigation into the case. Former BCP president Carlos Carvallo is in the same situation. A further 27 people linked to the bank and its business group were also charged, including eight former executives of the entity.
Source: El Deber