Economy: In Paraguay, the fall of Ueno Bank traps the savings of thousands of families

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Since then, the president of the BCP, Carlos Carvallo, has resigned. The authorities are preparing the first reimbursements, while parliamentarians are calling for investigations. But the anger and worry are still there.

In its official press release, the BCP specifies that its council decided unanimously, on November 2, to open the procedure. Corrections made to the financial statements during a regularization phase revealed the deterioration of the solvency ratio.

This indicator relates the equity to the risks borne by the bank. Its insufficiency reflects a capital problem; it does not, on its own, make it possible to calculate the final losses of depositors.

The designated administrators must verify the financial situation and preserve the assets. The BCP tries to reassure and presents this failure as a particular case, without asserting that the entire Paraguayan banking system is encountering the same difficulties.

The crisis also led to the departure of Carlos Carvallo, who previously headed Financiera Ueno. Liana Caballero has taken over as interim president of the BCP, reports the press.

The legal guarantee ceiling reaches 75 minimum salaries, or 228.3 million guaranís (approximately €34,000). It applies per depositor and per institution, and not separately to each account. Higher amounts do not automatically benefit from this coverage.

The BCP announced a first payment of up to 10 million guaranís (€1,500). At the same time, the Senate adopted a project providing for a larger advance on the guarantee. This vote is not enough to consider the system as having definitively entered into force.

Today, November 4, Liana Caballero also presented a schedule aimed at rapid first payments, with verification of beneficiaries and priority to current and savings accounts. These announcements obviously do not constitute a promise of rapid full restitution.

According to the EFE news agency, Horacio Cartes calls for an investigation and opposition senators announce that they want to initiate impeachment proceedings against Santiago Peña and his vice-president. At this point, a political demand does not constitute either adopted impeachment or dismissal.

For depositors, the immediate issue remains access to the guaranteed sums. It is therefore not only in crypto that users have anxieties. After Crédit Mutuel, it is now this Paraguayan bank that is making the headlines in economic news with three million accounts affected!

With a background in literature and languages, I like to combine rigorous analysis with a taste for ideas to decipher the major economic and (geo)political issues linked to cryptocurrencies. Since 2021, I have been writing for Journal du Coin where I focus on subjects such as , MNBC, the tokenization of RWA and more broadly the strategic mutations of Web3. A passionate reader, curious about the world and the power relationships that structure it, I strive to make these themes accessible to all, with particular attention to projects designed for the general public.

Machine-translated from French