Reuters reported Monday that Paraguay President Pedro Alliana nominated economist Jorge Schreiner to lead the central bank, bringing the next leadership decision before the Senate amid fallout from ueno bank S.A.'s collapse.
Alliana said in a post on X that Schreiner's financial-sector experience would strengthen the central bank's institutional framework and help restore public confidence. He said he expects lawmakers to consider the nomination soon. Schreiner's appointment requires Senate approval.
Reuters reported that Schreiner spent two years on the central bank's board, ending his term in 1999. He later led the Comisión Nacional de Valores (CNV), Paraguay's securities commission, for 10 years through 2013.
The Banco Central del Paraguay (BCP) board decided Nov. 2 to begin resolution proceedings for ueno bank S.A. and announced the decision Nov. 3. The BCP said the bank's solvency ratio was below 50% of the required minimum. It said the process aimed to protect depositors and preserve financial stability, and linked the shortfall to adjustments to the bank's financial statements.
The collapse disrupted customers' access to their accounts, Reuters reported. On Nov. 5, the BCP announced initial guarantee payments for eligible depositors.
Reuters linked the bank crisis to former central bank chief Carlos Carvallo's departure and former President Santiago Peña's removal by the Senate in an impeachment trial. The Senate cited poor performance tied to Peña's links to ueno bank's collapse. Alliana succeeded Peña after his removal.
Paraguay's prosecutors charged Peña and Carvallo over alleged ties to the lender and are investigating suspected irregularities. The charges remain allegations, not findings of guilt. The Senate must approve Schreiner's appointment before he can take office.
