President Santiago Peña appointed veteran economist Raúl Vera Bogado to head the central bank of Paraguay after the previous chief, Carlos Carvallo, resigned from the post. Carvallo, who once chaired the company that evolved into Ueno Bank, stepped down as the government managed the collapse of the country’s largest digital lender. The Banco Central de Paraguay seized Ueno on Nov 3 after finding the bank’s solvency ratio had dropped below 50% of the required legal minimum.
The closure locked approx. 3 million customers out of their accounts and cards, effectively freezing the funds of about 60% of Paraguay’s adult population. The failure disrupted the retail sector, as Ueno handled 66% of card payments at big stores, and left $380 million in state pension funds inaccessible. While regulators have ordered the arrest of 8 bank executives, the crisis has sparked widespread street protests and a formal request from the opposition to impeach President Peña.