Paraguay's central bank said Tuesday that nearly all eligible depositors affected by a bank seizure that sent shock waves through the country's financial sector had received partial reimbursement, marking a major step toward restoring access to their frozen funds.
The Nov. 3 takeover of Ueno Bank amid major insolvency concerns locked almost half the population of the normally stable country out of their accounts.
Senators impeached President Santiago Pena, who is linked to Ueno, over the crisis – a key demand of large-scale nationwide protests along with the return of the money.
The government, now led by Pena's former vice president Pedro Alliana, sped up the return of deposits via a guarantee fund.
Ninety-three percent of eligible depositors had been at least partially reimbursed via the fund as of Monday, its director Jose Maciel told a press conference.
"They finally transferred the money I was missing," 45-year-old Rosario, who preferred not to give her surname, told AFP.
Between Thursday and Monday, $340 million had been reimbursed to nearly 1.7 million people, according to Central Bank data.
The bank has identified 1,867,000 Ueno clients entitled to access the guarantee fund, its press office told AFP, without specifying how many people do not qualify.
Ueno began as a small fintech company with a digital-first model that attracted many low-income customers.
Within three years, it became a major bank handling state pensions and the accounts of several government entities.
The number of individuals affected by the crisis surpasses the number of direct clients of the bank, which held over $800 million in public funds.
