Collapse of Ueno Bank freezes Brazilians' salaries in Paraguay
Collapse of Ueno Bank froze newly deposited salaries of Brazilians in Paraguay. Learn more on Gazeta do Povo.
TL;DR
- Camila Brito, a Brazilian medical student in Asunción, had her salary and investments frozen due to Ueno Bank's collapse.
- The Paraguayan Central Bank initiated resolution proceedings for Ueno Bank due to solvency issues, leading to the resignation of its president.
- Around 1.2 million people received advances from the Deposit Guarantee Fund, with payments capped at 40 minimum wages.
- Clients with debts to Ueno Bank and those without accounts at other banks are awaiting subsequent payment stages.
- Savings certificates (CDA) have no set payment date yet, with 669,336 accounts still to be settled.
- Brazilian users like Rogério Vendruscolo valued Ueno Bank for its ease of making Pix transfers to Brazil.
- Approximately 97% of depositors are fully covered by the guarantee, with about 95% being small account holders.
- Economists note the crisis exposed the fragility of the Paraguayan financial system, though its scale is smaller than cross-border smuggling.
- Despite the bank's failure, business leaders believe it will not deter Brazilian investors from Paraguay.
- Events like the Expo Paraguay-Brasil indicate continued economic activity and interest in the region.