How the banking crisis affects Brazilian investments in Paraguay
Experts recommend caution and assess a scenario of uncertainty regarding the solidity of banks. Read on Gazeta do Povo.
TL;DR
- Ueno Bank, Paraguay's largest digital bank with 3 million clients and US$4.2 billion in assets, has collapsed.
- President Santiago Peña was a partner in Ueno Bank until March 2025, leading to suspicions of conflict of interest.
- The collapse has created uncertainty for Brazilian investors operating in Paraguay, particularly concerning the Maquila regime.
- Experts predict potential impacts on Brazilian businesses, including smaller orders and increased need for working capital.
- Paraguay's Deposit Guarantee Fund (FGD) offers coverage similar to Brazil's FGC, but the payout process is not immediate and may not cover all Ueno Bank clients.
- The crisis could affect Paraguay's attractiveness to foreign investors if the government does not respond effectively with timely payments and stronger oversight.