Ueno Bank Crisis, Paraguay Court Seeks ₲250 Million In Fees

Paraguay's Supreme Court said on 5th November that Ueno Bank had not transferred ₲250,448,960 in judicial and registry fees it had collected. The court said it would pursue recovery and, if necessary, enforce the performance guarantee in its contract with the bank, according to its notice.

The disclosure identifies a specific public institution awaiting money after the bank entered resolution, the statutory process for handling a failing financial institution. The court described the funds as pending transfer. It did not report a final loss or announce how much it would recover.

The outstanding receipts comprise ₲248,441,083 collected for 2nd November and ₲2,007,877 for 3rd November. The court said collections through Ueno were suspended and named Itaú, Basa, Continental and Sudameris as the other authorised banks for those payments.

Legal Proceedings And Bank Resolution

In a separate notice to judges and courts on 5th November, the Supreme Court circulated the banking supervisor's communication confirming that the Banco Central del Paraguay, the country's central bank, had ordered Ueno's resolution on 2nd November.

That communication cited Article 13(b) of Law 2,334/03. The provision concerns a solvency ratio, a measure of the bank's capital backing, falling below half the legally required minimum. The court notice does not give Ueno's precise ratio.

The court also told judges that the published resolution interrupts procedural deadlines in cases where Ueno is either claimant or defendant. Those deadlines restart on the business day after publication of the central bank's decision concluding the resolution process. The interruption therefore affects legal proceedings as well as the handling of deposits.

Resolution and judicial bankruptcy are separate steps under Article 12 of the law. It says only the central bank's board may request the bank's judicial bankruptcy after the resolution procedure has concluded. Starting resolution does not establish that this later step has occurred.

Capital Plan Preceded Resolution

Days before the resolution, Ueno had announced a $100 million capital plan on 29th October. Its announcement described a planned $50 million contribution from controlling shareholder U Holdings S.à r.l. in November and a further $50 million share programme for private Paraguayan investors.

The bank said the share programme was subject to authorisations and planned over the following 60 days. Those were proposed capital additions, rather than a statement that the entire $100 million had already arrived. In the same announcement, Ueno said it had more than three million customers.

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