Paraguay’s Senate approved a bill on Wednesday that would let savers at the collapsed Ueno Bank receive early payouts, as opposition lawmakers moved to impeach President Santiago Peña over the crisis.
The reform allows Ueno Bank customers to receive an advance of up to 40 minimum wages, about 121 million guaraníes, within 24 hours of the bank’s resolution, according to MercoPress. The bill now goes to the Chamber of Deputies, which is due to consider it on Thursday.
The Central Bank took over Ueno after its solvency ratio fell to 5.56%, against a minimum of 12%, according to MercoPress. The regulator detected irregular loans to companies owned by the bank’s owners, the Vázquez Group, the outlet reported.
In the 80-seat lower house, 35 lawmakers submitted impeachment articles against Peña on Wednesday and asked for an extraordinary session on Thursday, according to the Straits Times (SG). Opposition lawmakers accuse Peña of conflicts of interest, misuse of pension funds and institutional cover-ups linked to the bank’s collapse. These are allegations.
The Straits Times (SG) reports that the opposition remains short of the two-thirds majority needed to advance impeachment, but has backing from several dissident members of the ruling Colorado Party. Peña, a conservative economist who took office in 2023, was a shareholder in Grupo Vázquez, which controls Ueno, until March last year, the outlet said.
Ueno, a digital lender, has roughly 3 million customers in a country of 6.5 million people, according to the Straits Times (SG). Customers cannot access their accounts.
Eight Ueno executives were detained, according to the Straits Times (SG). Prosecutors issued arrest warrants on Tuesday, and courts ordered their assets frozen.
Al Jazeera reports that protests have erupted across Paraguay after Ueno Bank was shut down in the middle of the night over a solvency crisis. That outlet was available to us only as a headline and short excerpt.
Central Bank chief Carlos Carvallo has resigned. Liana Caballero is interim president and said the first payment would be up to 10 million guaraníes, with depositors split into three tranches. No dates, locations or requirements for the payments have been announced.
The Association of Banks of Paraguay (Asoban) said the banking system "continues to operate normally". No independent confirmation of system stability was found.
MercoPress is the only source for a reported US$14 million deposit from Conmebol, and no other source confirms it.
Peña’s presidency did not immediately respond to requests for comment on the impeachment, and the Straits Times (SG) reports he has not publicly addressed it. Ueno has made no public statement and did not respond to requests for comment, according to the Straits Times (SG).
The Chamber of Deputies is due to consider the savings advance bill on Thursday, and lawmakers have asked for an extraordinary impeachment session the same day. The outcome of both votes is not yet known.
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This article was written with AI assistance from the published reporting listed above. It is part of the World Brief daily news podcast.