Almost 1.2 million savers in Paraguay have received advance payments from the state's deposit guarantee fund after the collapse of Ueno Bank, but many customers are still waiting for their money a week after the digital bank was seized. The Central Bank said about $160 million had been paid out by Saturday, and the scheme widened on Monday to cover more depositors.

Ueno's services stopped abruptly in the early hours of Tuesday 3 November, when its app, cards and transfers were suspended. The Central Bank of Paraguay had voted unanimously the previous day to place the bank into resolution after finding that its solvency ratio had fallen below half of the legal minimum.

The collapse froze the savings of a bank that said it had 2.9 million customers, around 60% of Paraguay's adult population. The Central Bank counted about 1.8 million depositors. For many, the frozen accounts held wages, rent money and savings for food and bus fares.

How the guarantee payments work

Eligible deposits are protected by Paraguay's deposit guarantee fund up to 228.3 million guaraníes, about $38,000, per depositor. The Central Bank estimates that about 97% of depositors have balances fully covered by that guarantee.

Payments began on the evening of Thursday 5 November with the smallest savers, those holding up to 10 million guaraníes, about $1,700, with no debts to the bank and an account at another bank. A second group followed on Friday, and by Saturday almost 1.2 million people had been paid. The advance is worth up to 40 monthly minimum wages, about 121.76 million guaraníes, or roughly $19,800, with any overdue debts to Ueno deducted first.

From Monday 9 November, the scheme widened to depositors with larger balances and to customers who owe money to the bank. Advances are due to run until Wednesday 11 November, while the legal deadline for the full guarantee is 17 November, which can be extended once by a further 15 days. Depositors with blocked accounts, savings certificates and some linked operations have not yet been given a payment date.

A president toppled

The crisis has already brought down a president. Santiago Peña resigned on Thursday 5 November and was removed from office by the Senate the following day. Prosecutors then charged him with breach of trust and administration for personal gain, alleging he used his position to steer public money to the bank despite his links to its parent group. He has pleaded not guilty and is being held in pretrial detention at a military facility.

Pedro Alliana, the vice president, has been sworn in as president to serve out the rest of Mr Peña's term until August 2028. The former Central Bank president, Carlos Carvallo, was also arrested and charged, along with eight Ueno executives including 36-year-old chief executive Miguel Vásquez.

Where the money went

Prosecutors said on Monday they had sought help from the United States, Luxembourg and Argentina to trace and recover assets linked to the collapsed bank. The sums at stake are large: Paraguay's Social Security Institute had about $355 million invested in Ueno, around 9% of its total investment portfolio.

Questions have also been raised about the bank's lending. A former finance minister, Manuel Ferreira, told local outlet ABC Color that many of Ueno's loans had gone to companies linked to its controlling owners, Grupo Vásquez, including $146 million lent to just three companies. Protesters gathered outside Congress in Asunción on Friday, some burning Ueno Bank cards, in a demonstration that mixed anger over frozen savings with demands for wider accountability. For the savers still waiting, the coming days will show whether the guarantee fund can reach them in time.