Central bank of Paraguay returns savings to most Ueno Bank customers

The Central Bank of Paraguay began returning deposits to customers of Ueno Bank, a digital bank that collapsed due to solvency issues.

The bank intervened on November 3 to freeze the accounts of hundreds of thousands of Paraguayans. This collapse led to the impeachment and detention of the country's president, Santiago Peña, who was replaced by Vice President Pedro Alliana. The government accelerated the payout process through the Deposit Guarantee Fund to address social tension and protests.

The central bank reported that nearly 1.7 million people recovered a total of 340 million dollars since last Thursday. José Maciel, the director of the guarantee fund, stated that these payments cover 93.1 percent of the registered people eligible for state protection. While the bank claimed to have three million customers, the central bank has only identified 1,867,000 people eligible for the guarantee fund.

The recovery of funds remains uncertain for more than 800 million dollars in public funds held by the collapsed bank.