Paraguay has returned approximately $340.4 million to eligible Ueno Bank depositors through its Deposit Guarantee Fund following the intervention of the financial institution over solvency concerns.
According to the Central Bank of Paraguay, payments had reached 1,738,804 depositors by November 9, representing 93.1 percent of those registered as eligible for compensation. The total disbursement stood at 2.126 trillion Paraguayan guaranies, equivalent to approximately $340.4 million.
Editorial Insight
Key Highlights
Important points readers should notice.
Approximately $340.4 million distributed by November 9.
1,738,804 depositors had received payments by November 9.
Reimbursement coverage reached 93.1% of eligible depositors.
The total number of recipients increased to 1,782,360 by November 10.
Total disbursements reached approximately 2.205 trillion guaranies by November 10.
Ueno Bank entered the Central Bank's resolution process on November 3.
The reimbursement process continued on November 10. The Central Bank reported that another 59,825 depositors received advance payments worth approximately 79 billion guaranies. This brought the cumulative number of recipients to 1,782,360, with total disbursements reaching approximately 2.205 trillion guaranies.
The Central Bank initiated the resolution process for Ueno Bank on November 3 after identifying a serious shortfall in its solvency ratio. The intervention activated the country's deposit guarantee mechanism to facilitate the return of eligible savings.
Under Paraguay's deposit guarantee framework, eligible deposits are protected up to 75 monthly minimum salaries per depositor and financial institution. This limit was equivalent to 228.3 million guaranies at the time of the intervention.
Editorial Analysis
Why This Matters
The reimbursement programme is significant for depositors whose access to savings was disrupted following the bank's intervention. It also highlights the role of deposit guarantee mechanisms in protecting eligible customers during financial institution failures. However, larger deposits and public-sector funds remain separate recovery concerns.
However, the guarantee does not automatically cover every deposit in full. Accounts with restrictions, certificates of deposit and certain transactions involving the Development Finance Agency were among the cases requiring additional processing.
The crisis has also raised concerns about public-sector funds held by Ueno Bank. More than $800 million in public funds, including pension-related resources, were associated with the institution. The recovery of these funds remains a separate issue from the retail deposit reimbursement programme.
The Central Bank's intervention and the subsequent reimbursement programme have become major financial developments in Paraguay, with authorities continuing to address outstanding claims and the institution's resolution process.
