Paraguay’s president announces central-bank chief’s departure

Paraguay’s President Santiago Peña announced the departure of the central-bank chief online on 4 November, following Ueno Bank’s collapse, Euronews said. Peña also called on the courts to establish responsibility. He said those found responsible for irregularities must answer to justice without exceptions.

The Central Bank of Paraguay had intervened in Ueno and opened liquidation proceedings on 3 November. Board member Liana Caballero said the bank was closed and its app, cards and other services were inactive.

Appointments await approval

Carlos Carvallo resigned as central-bank president on 3 November, EFE said. Before joining the central bank in 2023, he had led Financiera Ueno, the predecessor of the bank placed under intervention.

Peña said he had asked Congress for constitutional approval to appoint Vera Bogado as president and Pedro Acosta and Édsel González as directors. Director Marco Aurelio González resigned on 4 November, leaving the board without the minimum number of members needed to conduct business. The proposed appointments are intended to restore that quorum.

Customers and public funds

Ueno had 2.9 million customers. Its closure followed the discovery that its solvency ratio, a measure of its financial strength, had fallen below half the required minimum. The bank also held around $850 million in public funds, including Social Security Institute money supporting workers’ pensions and healthcare coverage.

Peña said that, if Congress approved a proposed repayment law, it would cover 98% of affected savers and payments would begin in the week of his November 4 announcement.