The president of Paraguay's central bank, Carlos Carvallo, has resigned after the bank took control of the digital lender ueno on Tuesday, The Rio Times reports. The central bank placed ueno into resolution early in the day, saying its solvency index had fallen below half the required minimum. Customers found their cards and app no longer worked.
Ueno says it has more than three million customers and sold $350 million of dollar bonds to foreign investors this year; how bondholders will be treated is not yet clear. A state deposit guarantee fund covers savers up to about $38,000 each, and the central bank expects payouts to start within about 15 days, with larger balances to be recovered through legal resolution procedures. The bank said it saw no risk to the wider system. Carvallo is staying on temporarily, according to the paper.
Source: The Rio Times