In brief
Paraguay’s central bank chief Carlos Carvallo resigned at President Santiago Peña’s request as authorities launch resolution proceedings against the digital lender Ueno. Criminal investigations have led to the arrest of eight people linked to the bank, and Peña agreed to fast‑track a bill authorizing the use of the national Guarantee Fund to protect depositors’ savings.
On Tuesday, Paraguay’s central bank president Carlos Carvallo submitted his resignation after President Santiago Peña asked him to step down as authorities accelerated resolution proceedings against the digital lender Ueno. Carvallo said he would remain in office to allow the central bank to work without political and media distractions during the Ueno proceedings, a statement reported by Reuters.
The move comes amid a crackdown that has seen eight people linked to Ueno arrested and a prosecutor’s office ordering a criminal investigation into the lender’s operations. Ueno, majority‑owned by Grupo Vázquez, has roughly 3 million customers and manages about $850 million in public funds. Its rapid growth has raised concerns from lawmakers over its supervision and ties to Peña, who was a business partner of the bank’s owners until March 2025.
Depositors, including pensioners receiving state benefits through Ueno, staged protests outside closed bank locations. Manuel Cáceres of Ñemby demanded access to his savings:
"We're demanding access to money we have here at Ueno bank," said Manuel Cáceres.
Peña announced an agreement with congressional leaders to fast‑track a bill authorizing the national Guarantee Fund to make payments to depositors, and to ensure the return of public money and assets held by the IPS social‑security institute and other public pension funds. The resolution proceedings aim to protect depositors and preserve financial stability, according to the central bank’s statement.
