Paraguay's central bank puts digital lender ueno into resolution as its governor resigns

The Central Bank of Paraguay has placed ueno, a digital lender with around 3 million customers, into resolution after its solvency ratio fell below 50% of the required minimum. The board voted unanimously on 2 November.

Central bank president Carlos Carvallo, who chaired ueno's predecessor until 2023, resigned at the request of President Santiago Peña. Prosecutors ordered the detention of eight people linked to the bank, and a court froze assets of its owners and directors.

Ueno administers about $850 million in public funds, including roughly $380 million from the state pension and health fund. Depositors gathered outside closed branches, and protests in Asunción ended in clashes with police.

The deposit guarantee covers up to about $38,000 per person, enough to fully cover an estimated 97% of depositors. Peña agreed with Congress to fast-track a bill letting the fund pay out immediately. The central bank says the case is isolated.