Paraguay’s new president, Pedro Alliana, announced on Tuesday that the recovery of pension funds held within Ueno Bank is a top priority for his administration. The intervention in the financial institution has jeopardized approximately 800 million dollars, or about 716 million euros, in public assets. These funds include resources from five separate retirement accounts, and the resulting financial instability triggered a political crisis that led to the removal of Santiago Peña from the presidency.
Among the affected organizations is the Social Security Institute (IPS), which manages both pension funds and portions of the nation's health services. The uncertainty surrounding the potential loss of these assets has caused significant concern among retirees and workers. President Alliana, who assumed office last Friday, has pledged to protect the savings of citizens and to expedite compensation efforts following the bank's collapse.
The government has reported that roughly 1.74 million depositors have already received payments totaling 330 million dollars through the Deposit Guarantee Fund. Officials plan to complete the remaining reimbursements by Wednesday, 11 November, as mandated by emergency legislation approved by Congress. However, these payments do not guarantee that all customers will recover their full savings. The current guarantee scheme covers up to approximately 38,600 dollars, or 34,575 euros, per depositor, while initial advances are capped at about 20,000 dollars.
For many affected individuals, the partial return of funds offers a measure of relief. One customer, a 45-year-old named Rosario, noted that receiving her missing funds provided a first sign of relief after days of uncertainty. The intervention in Ueno Bank previously sparked mass demonstrations, with protesters demanding the return of their deposits and the departure of then-president Santiago Peña, who faced scrutiny over his ties to the bank. This pressure culminated in an impeachment trial in the Senate, leading to his removal and the subsequent transition to the Alliana administration.
The banking crisis has also had a severe impact on the labor market. According to Paraguayan labor minister Mónica Recalde, up to 7,000 people have lost their jobs at companies linked to the bank across Paraguay, Mexico, Nicaragua, Argentina, and Panama.
For many of those affected, the return of the money represents a first relief after several days of uncertainty. "At last they transferred the money I was missing," Rosario, a 45-year-old customer who preferred not to give her surname, told AFP.
