Paraguay’s central bank has set a limit of 40 minimum monthly wages for advances to Ueno Bank depositors as the lender enters a resolution process.
A depositor’s overdue debts will reduce the advance, making 40 minimum monthly wages a ceiling rather than a guaranteed amount. For any one depositor at a financial institution, the full guarantee extends to a maximum of 75 minimum monthly wages.
On Nov. 2, every member of the Central Bank of Paraguay (BCP) board backed moving Ueno into resolution. The BCP attributed Ueno’s solvency index falling below half the required minimum to adjustments made to its financial statements during regularization. The BCP called the case “isolated” and said it did not point to wider weakness in Paraguay’s financial system.
The BCP set a 24-hour window for starting advance payments and said the process must finish within five business days.
