Paraguay’s Senate approved a bill Wednesday that would let Ueno Bank customers draw part of their frozen savings within a day after the bank’s resolution, MercoPress reported.
The advance would be capped at 40 minimum wages, or roughly 121 million guaraníes for each customer. Existing law gives the Deposit Guarantee Fund 15 days to pay customers of a failed bank, with a further 15-day extension available. Ueno borrowers would have overdue installments deducted from the advance, leaving their remaining loan balance intact, MercoPress reported.
The advance would count toward, rather than increase, the existing deposit guarantee, capped at 75 minimum wages, or about 228 million guaraníes per depositor. The Central Bank of Paraguay (BCP) said that cap covers 97% of Ueno customers, MercoPress reported. For claims above the cap, the Social Security Institute, Paraguay’s pension fund, would receive payment before large depositors. Senators also rejected an effort to include every public fund deposited at Ueno.
BCP interim President Liana Caballero said an initial payout could reach 10 million guaraníes, with customers organized into three groups. MercoPress reported that officials had not announced payment dates, locations or requirements. Caballero said, “The operational side is the problem in paying out.”
MercoPress reported that the BCP assumed control after Ueno’s solvency ratio came in at 5.56%, below the required 12%, and found irregular loans to companies owned by the Vázquez Group, the bank’s owners. Reuters separately reported that opposition lawmakers filed impeachment articles against President Santiago Peña; EconoTimes covered the impeachment filing against Peña in an earlier story.
The Chamber of Deputies was scheduled to take up the bill Thursday, Nov. 5, MercoPress reported.
