Panic in Paraguay as bank accounts vanish overnight

Millions of customers of Paraguay’s Ueno Bank have been left unable to access their money after the central bank shut down the lender over a solvency crisis, Bloomberg Línea reports.

The central bank announced the closure shortly after 3 a.m. on Tuesday, suspending withdrawals, transfers and card transactions.

Ueno, which reported more than 2.9 million customers in June, processed over three million transactions daily.

Police were deployed to its headquarters in Asunción and branches as customers gathered seeking information about their savings.

The central bank said deposits of up to 228 million guaraníes, about $37,400, are protected under the deposit guarantee scheme, with repayments expected within 15 days. About 97 per cent of customers hold balances within that limit.

The shutdown disrupted pension payments and commercial transactions.

The Public Prosecutor’s Office has opened a criminal investigation and issued arrest orders against eight people linked to the bank.

Regulators insist the problems are isolated and the wider banking system remains stable.