Paraguay begins repaying savers after Ueno Bank collapse

The Central Bank of Paraguay began issuing payments to customers whose accounts were frozen following the closure of Ueno Bank, one of the country's largest financial institutions.

This process started during a weekend when banks remained open as an exception to standard hours. The Central Bank of Paraguay uses a deposit guarantee fund to reimburse small savers. While most of these payments occur automatically, larger depositors must wait for the full liquidation of Ueno Bank to receive their funds.

The Central Bank of Paraguay stated that over one million people have already recovered their savings and that the agency aims to process every valid claim. The collapse of Ueno Bank, which served nearly half of the population of Paraguay, occurred amid a political crisis that led to the removal of President Santiago Peña. Financial analyst Samuel Acosta noted that the crisis damages the credibility of the country's financial system and economic stability.

Three auditors from the Central Bank of Paraguay have been investigating the situation since November 3. Prosecutors are currently working to determine if the deposed president is responsible for the misappropriation of public funds.