Paraguay Pays 1.196 Million Ueno Bank Customers G.996 Billion in Guarantees

ASUNCIÓN, November 7, 2026 — Paraguay’s central bank says 1.196 million Ueno Bank customers benefited from deposit-guarantee payments over two days, with transfers totalling 996 billion guaranies, or about $160 million, as the new administration tries to restore access to savings after the lender’s collapse.

Interim Central Bank of Paraguay president Pedro Acosta announced the figures on Saturday after meeting President Pedro Alliana and officials from the Economy Ministry and the Social Security Institute. Acosta said the payments made on Thursday and Friday had reached 1.196 million beneficiaries. Local newspaper El Nacional described the same total as 1.196 million accounts credited, while EFE reported it as the number of people who had benefited from the state guarantee. The central bank’s figure is therefore best understood as the number of beneficiaries reached in the first two rounds, not proof that every customer has recovered the full balance held at Ueno.

The first round covered deposit balances from one million to 10 million guaranies. The second extended the process to accounts with balances up to 40 minimum salaries, equivalent to 121.76 million guaranies. Those thresholds define the initial payment stages; they do not mean the entire resolution of the failed bank has been completed. Acosta said work on more complex customer lists would continue through the weekend, and participating banks were making branches available for customers who preferred to withdraw cash.

The 996 billion guaranies paid so far represent a substantial mobilisation of the state-backed deposit-guarantee system, but the amount must be read alongside the bank’s much larger customer base. Ueno had about 2.94 million customers in a country of roughly 6.1 million people, according to EFE. The collapse therefore disrupted access to accounts for a large share of the population, including people who used the digital lender for everyday payments, savings and salary deposits.

The payment schedule began with smaller balances and then moved to a higher threshold. That sequencing allowed authorities to process a large number of accounts early, while leaving more complicated records for later verification. It is also why the 1.196 million figure should not be treated as a final count of all depositors who will be paid or as an indication that all claims have been settled. Customers with larger balances, incomplete records or accounts requiring additional checks may still have to wait for further instructions from the central bank and the institutions handling withdrawals.

The deposit-guarantee framework has a statutory ceiling. The Associated Press reported that the central bank says the scheme covers about 97% of Ueno’s customers, with deposits insured up to roughly $35,000. That protection is designed to shield most ordinary account holders, but it does not automatically make every amount held at the bank recoverable in full. Balances above the applicable limit, corporate exposures and public-sector funds require separate treatment through the bank’s resolution process.

Acosta’s announcement came after Alliana held his first meeting on the issue with the central bank, the Economy Ministry and the Social Security Institute. El Nacional reported that the new president instructed officials to speed up the return of depositors’ money. The central bank also thanked banks that were keeping branches available over the weekend so customers could collect cash where they preferred not to wait for a transfer or use another account.

The disruption has affected pensioners as well as private savers. Around 32,000 retirees had been receiving their benefits through Ueno, according to the central bank and Social Security Institute figures reported by EFE and El Nacional. IPS president Derlis León said the migration of those pension accounts to eight other banks was nearing completion. He also said the country’s more than 90,000 pensioners were expected to receive their salaries and annual Christmas bonus on November 17.

The pension issue matters because the bank held a substantial amount of public-sector money. EFE reported that about $355 million belonging to IPS was invested at Ueno, alongside funds from other public entities. That exposure is distinct from the individual deposit-guarantee payments now reaching customers. Authorities must explain how those institutional funds will be treated, what portion can be recovered and whether any public services or pension obligations could be affected if the resolution process takes longer than expected.

For households, the immediate concern is whether wages, pension payments and routine transactions can continue without interruption. For the state, the question is broader: how to protect customers while establishing the value of Ueno’s remaining assets and liabilities. A rapid payment to small depositors can ease pressure, but it does not by itself settle the claims of public institutions or determine how much money can be recovered from the failed lender.

The central bank ordered Ueno into a resolution or closure process on Tuesday after finding that its solvency ratio had fallen below half the legal minimum, EFE reported. The intervention froze customers’ access to accounts and triggered protests in Asunción. The lender had grown rapidly as a digital bank, attracting millions of users and public-sector deposits, but regulators later identified serious problems in its capital position and lending practices.

The collapse also produced a political crisis. The Senate removed Santiago Peña from the presidency on Friday after lawmakers accused him of misconduct connected to the bank’s oversight and its links to public funds. Vice-President Pedro Alliana was sworn in to complete the presidential term through August 2028, Reuters and the Associated Press reported. Peña has denied wrongdoing, and the allegations against him remain separate from the central bank’s task of returning eligible deposits.

The new administration faces pressure to show that the repayment process is being handled according to clear rules rather than political influence. That requires timely information on eligibility, payment stages, the handling of balances above the guarantee limit and the treatment of public funds. The central bank has described the Ueno failure as an isolated case and has sought to reassure the wider financial system, but confidence will depend on the transparency of the resolution and the speed with which customers can regain access to their money.

For the banking sector, the episode is a test of whether deposit protection can operate at scale when a large institution fails. The guarantee system is intended to prevent a bank’s collapse from turning into a wider loss of confidence, particularly among smaller savers. Its credibility depends not only on the legal promise but on the ability to identify beneficiaries, move funds safely and communicate decisions to people who may not have another account or easy access to digital banking.

The next milestones are the completion of the more complex payment lists, confirmation that pension accounts have been transferred, and clearer information on how institutional deposits will be handled. The central bank’s reported target for the current stage is to continue processing claims over the weekend and complete the more difficult lists in the following days. Until a full schedule is published, customers should distinguish between the amount already paid, the statutory guarantee available to eligible depositors and any remaining claims that still require assessment.