Paraguay's president Pedro Alliana announced on Tuesday that recovering pension funds deposited in Ueno Bank will be a government priority following the financial institution's intervention, which has put at risk around 800 million dollars belonging to public bodies, including resources from five retirement funds.
The crisis has triggered a political upheaval that ended with the removal of former president Santiago Peña from office, leaving Alliana to inherit the situation after taking power last Friday.
Among the institutions affected is the Social Security Institute (IPS), which manages pensions and part of the country's health services, creating growing concern among workers and retirees about their savings.
Alliana has pledged to protect citizens' savings and accelerate compensation, reporting that around 1.74 million depositors have received 330 million dollars through the Deposit Guarantee Fund, with plans to complete all outstanding reimbursements under emergency legislation by Wednesday 11 November.
However, the guarantee scheme covers only up to about 38,600 dollars per depositor, with initial advances limited to approximately 20,000 dollars, meaning many customers will not recover their full savings.
For those affected, the payments represent relief after days of uncertainty. 'At last they transferred the money I was missing,' told AFP from a 45-year-old customer identified only as Rosario.
The intervention sparked mass demonstrations demanding both deposit returns and the departure of then president Santiago Peña, who was linked to the financial institution, leading to his impeachment trial in the Senate.
The crisis has also impacted employment, with up to 7,000 people losing jobs in companies connected to Ueno Bank across Paraguay, Mexico, Nicaragua, Argentina and Panama, according to labour minister Mónica Recalde.
Source: Euronews. Read the original report ↗