Paraguay's new president, Pedro Alliana, announced on Tuesday that recovering pension funds deposited in Ueno Bank will be a priority for his government. The intervention has placed around 800 million dollars at risk, affecting public bodies and five retirement funds, and triggered a political crisis resulting in the removal of Santiago Peña from office.
Among the affected institutions is the Social Security Institute, which manages pensions and health services, causing growing concern among workers and retirees. Alliana took over the presidency last Friday and has pledged to protect citizens' savings and accelerate compensation following the banking collapse.
The president stated that around 1.74 million depositors have received payments totalling 330 million dollars via the Deposit Guarantee Fund. The government plans to complete outstanding reimbursements on Wednesday 11 November, as provided for in emergency legislation approved by Congress.
These payments do not guarantee that all customers will recover their full savings, as the scheme covers up to about 38,600 dollars per depositor with initial advances limited to approximately 20,000 dollars. For many affected individuals, the returned money provides a first relief, with customer Rosario telling AFP that the missing funds had finally been transferred.
The Ueno Bank intervention sparked mass demonstrations demanding deposit returns and the departure of Peña due to his links with the institution. Political and social pressure culminated in his Senate impeachment, after which Alliana took over the government and accelerated the compensation payments.
The crisis has also impacted the labour market, with Paraguayan labour minister Mónica Recalde reporting that up to 7,000 people have lost their jobs in companies linked to the bank across Paraguay, Mexico, Nicaragua, Argentina and Panama.
Source: Euronews. Read the original report ↗