The Central Bank of Paraguay (BCP) announced that Ueno Bank customers could begin receiving an initial payment of up to ₲10 million (approximately US$1,680) each, with the first transfers expected by Friday, 6 November. The announcement was one of several developments on Tuesday afternoon, 3 November 2026, after the BCP began a formal resolution procedure for the private bank over serious solvency problems.
Prosecutors ordered the detention of eight people linked to Ueno Bank, a court froze assets linked to its owners and directors, and BCP president Carlos Carvallo submitted his resignation.
How and when customers should be getting paid
BCP board members Liana Caballero and Marco Aurelio González outlined the plan at a Tuesday afternoon press conference in Asunción. The BCP is compiling a register of active Ueno accounts to organise payments, with the first transfers expected by Friday, 6 November, at the latest. Small savers will be prioritised.
Customers who already hold an account at another bank will be paid first through direct transfers. For those without one, the BCP is studying alternatives, including quickly opening a new account with support from the Association of Banks of Paraguay (Asoban).
For retirees, the BCP is working with the Social Security Institute (IPS) to identify accounts at other banks. The IPS said more than 32,000 retirees paid through Ueno will be moved to other banks automatically and that pensions and year-end bonuses will be paid on time.
Depositors with more than ₲10 million will receive the remaining guaranteed balance within the 15-day legal period, according to Caballero. That period ends on 17 November. The BCP has said customers obligations with Ueno Bank will be taken into account when calculating the amount payable under the guarantee, meaning some customers could receive less than ₲10 million initially.
The BCP has promised further instructions through its official channels.
Eight detention orders issued
Prosecutors opened a criminal case after the BCP filed a complaint on Tuesday morning. Four prosecutors from the specialised unit for economic crimes and anti-corruption ordered the detention of eight people linked to the bank, including chief executive Federico Miguel Vázquez Villasanti and chairman Juan Manuel Gustale.
Prosecutor Francisco Cabrera said investigators are assessing conduct that could amount to breach of trust and fraud, among other offences. More than 2,000 pages of documents are under review. Cabrera said the orders were intended to secure the suspects presence in court after investigators received alerts that some might leave the country.
Mariana Isabel Torres Rubiani and Julio Daniel Rey Fernández surrendered at police stations in Asunción. Vázquez later presented himself to the national police investigations department with his lawyer. By later in the afternoon, local media reported that most of the suspects were in custody.
A detention order is not a finding of guilt. The investigation is ongoing, and formal charges have not yet been filed.
Court restricts assets of the bank’s owners
A civil judge in Asunción, Walter Mendoza, ordered a precautionary asset freeze on Tuesday at the BCP’s request. The measure prevents the assets concerned from being sold or transferred and covers up to ₲1.6 trillion (approximately US$70 million).
The order covers assets of U Paraguay S.A., U Holdings S.A.R.L. and Grupo Vázquez S.A.E., as well as bank directors including Vázquez and Gustale. According to the BCP, the measure aims to prevent assets from being disposed of and preserve them to support repayment of depositors.
The asset freeze does not mean the money has been recovered, nor does it constitute a finding of guilt.
BCP president submits resignation
Carlos Carvallo submitted his resignation as BCP president on Tuesday, notifying the Executive Branch and the president of the Senate. He said he would remain temporarily to ensure the resolution process continued as planned.
Carvallo has led the BCP since August 2023. Between 2021 and 2023, he chaired Financiera Ueno, the finance company that later became Ueno Bank.
Investment funds paused and services affected
Ueno’s brokerage arm, Ueno Casa de Bolsa, said the Securities Superintendency (SIV) paused two investment funds, one in guaraníes and another in dollars. It said the funds are legally separate from the bank and belong to investors.
Other institutions also adjusted their services. State water company Essap said it will not cut service in November for customers who pay through Ueno, while the Supreme Court suspended fee collections through the bank.
Why Ueno Bank is in resolution
The BCP board voted on Monday, 2 November, to place Ueno Bank into resolution after its solvency ratio fell below 50% of the required minimum. Eligible deposits are protected by the Deposit Guarantee Fund (FGD) up to ₲228.3 million (approximately US$38,270) per depositor, per institution.
What happens next
The BCP is due to publish final instructions for the first payment of up to ₲10 million, including how customers without another bank account will receive their money and how remaining guaranteed balances will be paid.
Lawmakers are also considering measures to accelerate repayments. The Senate approved a bill on Tuesday that would allow an advance of up to 40 monthly minimum wages, approximately ₲121 million, within 24 hours. The payment would count towards the existing deposit guarantee rather than increase its overall limit. Under the proposal, only overdue debts with Ueno Bank would be deducted before calculating the advance.
The Chamber of Deputies is due to consider the bill at an extraordinary session on Wednesday, 4 November. The criminal investigation is continuing, while the BCP has said it will announce each new stage of the repayment process through its official channels.
