# Paraguay's Ueno Bank Crisis Freezes Redemptions at 13 Funds

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/48987
Published: 2026-11-05T03:10:40.000Z
Updated: 2026-11-05T03:10:40.000Z
Section: Business

> Ueno served about three million customers, while the national retirement and health fund had roughly $380 million tied up at the bank.

Paraguay's takeover of Ueno Bank has frozen redemptions at 13 mutual funds and trapped public money, widening the bank's failure into a financial and political crisis.

The securities regulator suspended redemptions, cash distributions and new subscriptions across 13 funds managed by five firms because they held Ueno-linked positions whose value and liquidity were uncertain. Trading in Ueno bonds was also halted. Paraguay's national retirement and health fund, IPS, had about $380 million tied up at the bank.

The importers and merchants group Asimcopar said roughly two-thirds of large supermarkets' electronic transactions were handled through Ueno accounts and warned retail activity could be partly paralyzed.

Central Bank President Carlos Carvallo submitted his resignation at President Santiago Peña's request. Peña canceled a planned trip to Madrid for an Ibero-American summit and stayed in Paraguay.

The central bank took control of Ueno after its solvency ratio fell below half the legal minimum. Initial payouts of up to about $1,700 are planned to begin by Friday, Nov. 6, with smaller depositors prioritized. The central bank has described Ueno's condition as an isolated case, saying it does not indicate broader banking-system stress. Ueno served about three million customers, roughly 60% of Paraguay's adult population.