Paraguayan President Santiago Peña said his government would compensate customers affected by Banco Ueno’s dissolution. (Foto: Instagram)
Paraguayan President Santiago Peña said Wednesday, Nov. 4, that his government would compensate customers affected by the dissolution of digital lender Banco Ueno. The Central Bank of Paraguay had begun the process of dissolving the bank earlier in the day.
Peña said he met with the presidents of Paraguay’s Chamber of Deputies and Senate to present a bill intended to cover 98% of the affected institution’s shareholders. He said payments would begin this week and urged lawmakers to act quickly on the proposal.
Peña also named Raúl Vera Bogado as the new president of the Central Bank and appointed Pedro Acosta and Edsel Gonçalves as directors. He said the appointees have long careers in banking and experience handling crises. Peña sought to reassure the public, saying the country’s financial system was strong and had institutions and safeguards in place.
The Central Bank began the dissolution process on Tuesday, Nov. 3. The move sparked public anger and was followed by the resignation of Central Bank President Carlos Cavallo. Banco Ueno was one of Paraguay’s largest digital banks.
Eight Banco Ueno executives were arrested Tuesday. Paraguay’s Public Prosecutor’s Office accuses the bank of manipulating its financial position and of operating a scheme to issue loans improperly to companies that allegedly had ties to the bank’s controlling group. The Central Bank’s complaint against Ueno is more than 200 pages; with attachments, the case file totals nearly 2,000 pages.
Prosecutor Francisco Cabrera said the arrests were intended to ensure the investigated individuals’ presence and participation in legal proceedings. He said authorities had received information suggesting that some of them might flee the country.
