In brief
On Nov. 3, Paraguay’s central bank chief Carlos Carvallo resigned at President Santiago Peña’s insistence, following escalating scrutiny over digital lender Ueno. Eight people linked to Ueno were arrested and prosecutors began a criminal probe, while Peña pushed for a bill to use the Guarantee Fund for depositors. Carvallo’s resignation aims to calm the controversy amid the bank’s exposure to public funds.
Paraguay’s central bank chief Carlos Carvallo resigned on Tuesday at the request of President Santiago Peña, as the country confronts an expanding crisis at digital lender Ueno, Reuters reported.
Confirmed: The resignation followed resolution proceedings for Ueno and a prosecutor’s office move to investigate the lender, which resulted in the arrest of eight people linked to the bank, Reuters said.
Confirmed: Carvallo had previously said he would remain in his post while the resolution process unfolded, but in a press conference today he pledged to step aside to help calm the controversy, Reuters reported.
Carvallo said,
Stepping aside will help to quell the controversy surrounding the BCP.
Carvallo was named as the bank’s head, a position he took following his tenure leading the fast‑growing digital lender until August 2023.
Manuel Cáceres of Ñemby, a suburb of Asunción, expressed frustration over limited access to deposits,
We’re demanding access to money we have here at Ueno bank. Unfortunately, a lot of people, myself included, are spending the morning like this.Reuters quoted the comments.
Confirmed: President Peña announced an agreement with congressional leaders to fast‑track a bill that would allow the national Guarantee Fund to pay depositors and return public money, Reuters said.
Ueno, majority‑owned by Grupo Vázquez, has about 3 million customers and holds roughly $850 million in public funds, the report added.
Unconfirmed: The final status of the Guarantee Fund bill and the progress of the resolution proceedings for Ueno await legislative confirmation and additional investigative outcomes.
