Paraguayan President Santiago Peña said the government would compensate customers affected by the dissolution of Banco Ueno. (Foto: Instagram)
Paraguayan President Santiago Peña said Wednesday, Nov. 4, that the government would compensate customers affected by the dissolution of digital lender Banco Ueno. The Central Bank of Paraguay began the dissolution process Tuesday, Nov. 3, following an intervention at the bank.
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 bank’s shareholders. He said payments could begin as early as 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 extensive banking careers and experience managing crises. Peña sought to reassure the public, saying the country’s financial system was strong and had institutions and mechanisms to provide protection.
The Central Bank’s move against Banco Ueno prompted public anger and was followed by the resignation of its president, Carlos Cavallo. Eight Banco Ueno executives were arrested Tuesday. Paraguay’s Public Ministry accuses the financial institution of manipulating its financial position and participating in 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 exceeds 200 pages; with attached documents, the case file totals nearly 2,000 pages. Paraguayan prosecutor Francisco Cabrera said the arrests were intended to ensure that the individuals under investigation would be present and participate in legal proceedings. He said authorities had received information suggesting that some of them might flee the country.
