Paraguay shuts down Ueno Bank over solvency crisis

Summarised from 4 outlets · 5 reports · Updated 5 Nov, 15:16 · Archive

Paraguay closed Ueno Bank after detecting a critical collapse in its solvency ratio, leaving millions unable to access deposits.

Paraguay's central bank placed Ueno Bank under intervention and began winding-up procedures in the early hours of Tuesday 3 November, after detecting a critical collapse in its solvency ratio below 50%. The shutdown followed months of regulatory scrutiny over loans to affiliated companies and accounting adjustments that exposed a capital shortfall.

Almost three million customers found themselves unable to access their accounts when the bank's mobile app stopped displaying balances and showed only a single message: 'We cannot display the balance'. An estimated 60% of Paraguay's adult population banks with Ueno, which had grown rapidly in its three years of existence.

The bank held approximately 850 million dollars in public resources, including funds from the Instituto de Previsión Social that support pensions and healthcare coverage for workers. This accounting gap is described as wiping out significant public funds.

Protests erupted immediately after the closure, with crowds of angry customers gathering at the bank's main headquarters in Asunción and its 75 branches across the country. Customers described scenes of desperation at the closed branches, with some in tears unable to pay for medicines or buy food for their families.

The crisis has pushed Paraguay into what observers describe as its worst institutional crisis in years. Euronews reports that the liquidation has triggered political turmoil, with an impeachment move against President Santiago Peña, though the outlet does not provide details of the impeachment process.

How it is being reported

• Paraguay's President Santiago Pena resigns amid a bank crisis that froze millions of customers' accounts and sparked protestsParaguay's President Santiago Pena has resigned amid a crisis over his ties to collapsed lender Ueno. Millions of customers' accounts are frozen, with public pension and health care funds also tied up.DW News · 5 Nov, 16:28
• Ueno Bank liquidation triggers Paraguay political turmoil and impeachment move against PeñaThe accounting black hole at Ueno Bank is wiping out public funds, leaving thousands without access to their deposits and pushing Paraguay into its worst institutional crisis in years.Euronews · 5 Nov, 14:38
• Ueno Bank collapse sparks political crisis and impeachment move in ParaguayThe accounting black hole at Ueno Bank swallows public funds, leaves thousands of citizens without access to their deposits and pushes Paraguay into its worst institutional crisis in years.Euronews · 5 Nov, 14:38
• Paraguay bank collapses with half of population’s savingsProtests have erupted across Paraguay after Ueno Bank was shut down in the middle of the night over a solvency crisis.Al Jazeera · 5 Nov, 04:11
• Regulators step in as Paraguay’s Ueno Bank faltersParaguay shut down Ueno Bank following months of scrutiny over loans to affiliated companies and accounting adjustments that exposed a capital shortfall.UPI · 3 Nov, 16:35

In this story: Ueno Bank · Paraguay · Santiago Peña · Banco Central del Paraguay · Instituto de Previsión Social · Asunción

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log