Paraguay partially refunds Ueno Bank depositors after collapse

Paraguay's Central Bank said Wednesday it had partially returned savings to all eligible Ueno Bank depositors locked out of their accounts when it collapsed last week.

The digital bank's takeover on November 3 triggered massive protests across Paraguay and led to the impeachment and arrest of ex-president Santiago Pena, who is linked to Ueno.

Pedro Acosta of the Central Bank said "100 percent" of Ueno clients entitled to a deposit guarantee fund had received at least part of their money back.

The institution partially refunded money to 1,812,348 people, it said.

Ueno executives and shareholders do not qualify for the guarantee fund.

Most of the money held in Ueno has not been recovered, however.

The number of individuals affected by the crisis surpasses the number of Ueno's direct clients, which held over $800 million in public funds.

The bank, seized amid major solvency concerns, began as a small fintech company with a digital-first model that attracted many low-income customers.

Within three years it became a major player handling state pensions and the accounts of several government entities.

Pena, impeached on Friday and currently in pretrial detention, owned shares in Ueno's holding company until he sold them last year.

He is accused of using his influence as president to steer millions in government deposits to Ueno and hiding or downplaying its financial woes despite warnings about questionable loans and solvency issues. He denies all charges.

(FRANCE 24 with AFP)