Ueno Bank Closes, Affecting Major Depositors like IPS and CONMEBOL

Ueno Bank in Paraguay was closed on November 3 by the Central Bank after detecting that its solvency ratio fell below 50% of the legal minimum. The decision halted its operations and affected nearly 3 million customers, around 60% of the adult population of the country. Among the major depositors are the Social Security Institute (IPS) with 1.74 trillion guaraníes (232 million dollars) in certificates of deposit, the Ministry of Economy with 250 billion guaraníes, and the Banking Fund with 186.25 billion guaraníes. CONMEBOL also appears with 85.47 billion guaraníes (14.3 million dollars). Bonds issued for 350 million dollars in March have lost nearly 13.4% of their value, dropping from almost 99 cents per dollar to 85.71 cents. To mitigate the impact, the Senate approved a project to advance up to 121 million guaraníes per depositor within 24 hours, and the Central Bank announced an initial payment of up to 10 million guaraníes from the Deposit Guarantee Fund.

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