Bank of Paraguay begins to return funds to injured savers of Ueno

O Paraguay's Central Bank began to return its funds, in the form of advances, to the savers victims of the banking crisis, which led to a political crisis and culminated in the process of destitution of President Santiago Peña, according to bank sources.

“The process of payment of guarantee advances to the depositors of Ueno Bank began on Thursday,” said French news agency AFP José Maciel, administrative director of the Paraguayan Central Bank Deposit Guarantee Fund (BCP).

The first disbursements, according to the person responsible, are intended for depositors who had in the digital bank Ueno, at the origin of the crisis, “deposits between 1 and 10 million Guaranis”, between 160 and 1,600 dollars.

The Central Bank explained that “it transferred groups of depositors from Ueno Bank to other banks and financial entities where they already had active accounts”, and the corresponding amount was credited to those accounts.

Not specifying how many injured depositors had received advances to date, nor the overall amount concerned, the central bank indicated that “the following groups will be announced progressively” as disbursements are made.

During today's trial of the President of Paraguay, Santiago Peña, in the Senate, his lawyer estimated that 700,000 savers had received the first disbursements until this afternoon, without further details.

Since Wednesday, day after the start of the crisis, Parliament has passed an express law providing for the first payments, to injured savers, of advances that may reach up to the equivalent of “40 monthly minimum wages”.

The banking crisis, which broke out on Tuesday with the takeover of Ueno Bank, froze the deposits of almost three million people, the number of customers Ueno Bank claimed to have, i.e. almost half of Paraguay's population.

Companies and institutions were also affected.

The Paraguayan Senate began today the process of destitution of Santiago Peña, president since 2023.

The still Paraguayan head of state had filed his resignation on Thursday, but Parliament did not accept it, making it inevitable that his trial of dismissal, led by the Senate, would be dismissed.

The crisis has provoked several demonstrations since Tuesday against President Peña, who allegedly would be linked to the Ueno bank, demanding not only his exit, but also his arrest.

On Friday, about 250 protesters were still gathered, sitting on the grass next to the Parliament while the trial was being held for the dismissal of Santiago Peña, with posters demanding “Peña in prison”.