How Paraguay’s Ueno collapse is only its latest banking crisis
Summary
Paraguay’s central bank placed Ueno Bank into resolution after finding its capital had fallen below half the legal minimum, freezing accounts for nearly 3 million customers. The collapse has triggered protests and an impeachment effort against President Santiago Peña, who previously held a stake in the bank’s parent company, Grupo Vázquez.Key Facts
- Ueno Bank reported about 3 million customers, roughly 60 percent of Paraguay’s adult population.
- The bank managed about $800 million in public funds, including roughly $380 million invested by a state pension and health fund.
- The central bank said Ueno’s solvency ratio had fallen to less than half the legal requirement.
- Regulators found that Ueno had made $146 million in loans to companies linked to its owner, Grupo Vázquez.
- Investigators said some related-party loans exceeded legal limits, lacked adequate collateral, and were poorly documented.
- After regulators corrected the bank’s accounts, its capital was found to be below half the legal minimum.
- Peña requested 72 more hours to prepare his defense at an impeachment hearing, while the Senate proceeded with efforts to consider his removal.
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