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Paraguay market vendors hunt for payments after ueno bank resolution
Reuters reported Nov. 11 that stallholders at Asuncion’s Mercado 4 are seeking other banks or cash after Paraguay’s central bank put digital lender ueno into resolution.
- New headline Was: “Paraguay digital bank collapse leaves market traders scrambling for alternatives”
- Our desk filed its story
Based on reporting by Reuters
Vendors at Mercado 4 in Asuncion are shifting to other banks or cash after Paraguay’s central bank last week placed digital lender ueno into resolution over solvency concerns and froze millions of accounts, Reuters reported on Nov. 111.
Reuters said the Nov. 3 collapse left about 3 million customers temporarily without access while authorities work on reimbursements and transfers, and that a local merchants’ group estimated about 80 percent of Mercado 4 sellers used ueno1.
The wire said ueno launched in 2021, received a banking license in 2023, and marketed itself around financial inclusion in a country where informal work was about 60 percent of employment last year; the central bank acted after concluding the lender lacked capital to cover risks on loans to connected companies, according to Reuters1.
President Pedro Alliana, who took office last week, said Tuesday that 95 percent of ueno depositors had been repaid through the deposit guarantee fund and the rest would be finished by Wednesday, Reuters reported; prosecutors have charged 35 people so far, the same account said1.