Paraguay Central Bank pays most Ueno Bank savers before legal deadline

The Central Bank of Paraguay (BCP) has distributed advance payments to more than 93% of eligible depositors of Ueno Bank, a popular digital bank in Paraguay.

The state-run Deposit Guarantee Fund (FGD) issued these payments after the BCP closed Ueno Bank because its solvency dropped below half of the legal minimum. By the end of Monday, 9 November, the BCP confirmed that 1,738,804 depositors received funds totaling ₲2.126 trillion, which is approximately US$341.5 million.

The bank distributed the funds in groups based on account balances and debt status. Savers with smaller balances and no debts received payments first, followed by those with balances up to ₲121.76 million. A third group receiving payments on Monday included 540,609 people whose balances exceeded ₲121.76 million. These individuals received a maximum advance equal to 40 monthly minimum wages.

Customers who owed money to Ueno Bank also received advances, though the BCP deducted only the overdue portion of their debt before calculating the payout. About 7% of eligible depositors are still waiting for payments because their cases require extra checks, such as for savings deposit certificates or blocked accounts. The BCP expects to finish these remaining payments by the legal deadline on Wednesday, 11 November.

For those with balances above the current advance limit, the BCP will begin a reconciliation process to determine the remaining guaranteed amount. Additionally, the National Directorate of Tax Revenue (DNIT) plans to waive fines and interest for 45,000 taxpayers affected by the bank closure. President Pedro Alliana instructed this measure to help people who used Ueno Bank for tax payments over the last three months. Taxpayers must apply for an exclusion of responsibility to receive this relief.