Paraguay pays advances to Ueno Bank depositors
The central bank wants to pay affected account holders an initial sum within five working days.
There is news on this story (Thursday, 5 November 2026, 23:44): Charges threaten Paraguay’s resigned president
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Paraguay is beginning to pay an advance to depositors at Ueno Bank, the digital bank placed under state control earlier this week. The central bank says account holders will be informed from 5 November at which other bank they can withdraw the money.
Paraguay’s central bank announced on 4 November that the first payments would begin within 24 hours and must be completed within five working days at the latest. The advance is capped at forty minimum wages. According to the central bank, overdue debts to Ueno Bank will be deducted from the advance.
The measure follows the decision to place Ueno Bank in a resolution procedure. According to the central bank, the bank’s solvency ratio had fallen to less than half the legally required minimum. The central bank says that in this procedure the regulator takes over management and examines how savings and assets can be protected.
Associated Press reported that Ueno has around three million customers and manages between 800 and 850 million dollars in public funds. Around 380 million dollars of that is said to come from Paraguay’s pension and health fund. The bank has close ties to President Santiago Peña, meaning the financial problems are also causing a political crisis.
According to AP, customers were temporarily unable to withdraw or transfer money after the intervention. Based on preliminary estimates reported by AP, the deposit guarantee covers a maximum of 228.3 million guaraní, equivalent to around 38,000 dollars, and would thereby fully protect approximately 97 per cent of depositors. In its new statement, the central bank mentions only the advance of up to forty minimum wages; it has not yet provided a full guarantee for the remaining amount.
Paraguayan authorities are also investigating possible wrongdoing involving the bank. AP reported that prosecutors had several directors and senior managers arrested on suspicion of, among other things, breach of trust. The precise scale of any losses and the eventual settlement of larger deposits have not yet been established. For Dutch readers, the key point is that the case shows how quickly problems at a large digital bank can affect depositors, public funds and political trust.
Also show the region and a close-up
Both sides of the figures
▲ Bright spots
- The central bank has announced a concrete payment schedule: starting within 24 hours and completion within five working days.
- According to AP, the deposit guarantee could fully cover around 97 per cent of depositors.
▼ Concerns
- According to AP, the bank manages between 800 and 850 million dollars in public funds, including around 380 million dollars from a state fund.
- According to AP, full repayment has not yet been promised for larger deposits.
Critical note
The advance scheme says nothing yet about the eventual losses or how much public money can be recovered. The stated 97 per cent coverage is also a preliminary estimate.
Who notices what
- Households
- Depositors will receive an advance, but larger deposits could remain uncertain for longer.
- Businesses
- Companies with accounts at Ueno may face temporary restrictions on payments and liquidity.
- Investors
- The case could affect confidence in Paraguayan banks and state funds.
- Government
- Protecting public funds could expose the state to losses or implementation costs.
Every point comes from the article’s sources and was included in the fact check.
One story, several perspectives
What is established
- Paraguay’s central bank placed Ueno Bank in a resolution procedure.
- The bank announced an advance scheme for depositors on 4 November.
- The case also affects public funds and has political consequences for Santiago Peña’s government.
Left
Arguments The state must actively protect depositors and public funds and provide full transparency about the role of political officials and regulators.
Values Social protection, public responsibility and democratic oversight.
Consequences A cautious approach could disproportionately affect small depositors and pensioners and further undermine trust in financial institutions.
Centre
Arguments The resolution procedure and temporary payments are institutional means of limiting panic while regulators first establish the bank’s financial position.
Values Legal certainty, financial stability and prudent governance.
Consequences A rapid but limited guarantee can stabilise the system without immediately passing all losses on to taxpayers.
Right
Arguments Directors and regulators must be held personally accountable; a public rescue must not become a licence for poor management or political favouritism.
Values Personal responsibility, budgetary discipline and robust enforcement.
Consequences A tough settlement could strengthen confidence in the market, but could also create greater uncertainty for depositors with funds above the guarantee.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The article’s core is based on a statement from Paraguay’s central bank and an independent AP report. Uncertainties about larger deposits and the criminal case are explicitly presented as uncertain.
- confirmed The central bank will begin payments within 24 hours and complete them within five working days. — Banco Central del Paraguay cites both deadlines in its statement of 4 November 2026. source
- confirmed The advance is capped at forty minimum wages. — This is stated in the central bank’s official statement. source
- confirmed Ueno Bank was placed under state control after its solvency ratio fell below half the legal minimum. — The central bank and AP describe this as the reason for the resolution procedure. source
- confirmed Ueno has around three million customers and manages between 800 and 850 million dollars in public funds. — These figures were attributed by AP to Ueno and relevant authorities. source
- confirmed The deposit guarantee would fully cover around 97 per cent of depositors. — AP reports this as a preliminary estimate. source
Editor's note
It is certain that the central bank published an advance scheme on 4 November and intended to begin payments within 24 hours. The precise losses, the eventual repayment of larger deposits and the outcome of the criminal investigation remain uncertain.Sources
- Pago del anticipo de la garantía de depósitos a los ahorristas de ueno bank — Banco Central del Paraguay
- Paraguay seizes major digital bank linked to President Santiago Peña — Associated Press
- Todos los comunicados del BCP sobre Ueno Bank — ABC Color
The story so far
- Thursday, 5 November 2026, 13:11 Paraguay pays advances to Ueno Bank depositors (this article)
- Thursday, 5 November 2026, 19:10 Paraguayan president Peña resigns amid banking crisis
- Thursday, 5 November 2026, 23:44 Charges threaten Paraguay’s resigned president
More on this in Dutch media
- de Volkskrant — „paraguay ueno bank”
- RTL Nieuws — „paraguay ueno bank”
- NOS — „paraguay ueno bank”