Paraguay Rating Placed on Negative Watch by Fitch: Digital Bank ueno Collapse Froze Savings of Nearly 3 Million Customers, With About 850 Million Dollars in Public Funds Involved
Credit ratings agency Fitch on November 11 placed Paraguay's "BB+" sovereign rating on watch for a possible downgrade, citing fallout from the collapse of digital lender ueno and the subsequent political upheaval, including potential spillovers to the banking system, government finances, economic growth and policy continuity.
Ueno, the country's sixth-largest lender, held roughly 850 million dollars in public funds as of June, including state pension money. Paraguay's central bank placed ueno into resolution on November 2 after its capital fell below half the regulatory minimum, freezing the savings of nearly 3 million customers in a country of 6.5 million people.
Fitch said it does not presently anticipate broader financial stability risks, given the sound solvency and liquidity positions of other systemically important banks, while warning of downside risks to its 4.5 percent growth forecast for Paraguay in 2026.
The collapse triggered the country's deepest political crisis in more than a decade. The Senate voted on Friday to remove President Santiago Peña over his ties to the collapse, despite his resignation a day earlier. Prosecutors widened their investigation on Monday, raiding the firm's brokerage arm, as the government installed a new central bank chief to help contain the fallout.
Published by GSM · USA (original Chinese edition)
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- 2026-11-11Paraguay Rating Placed on Negative Watch by Fitch: Digital Bank ueno Collapse Froze Savings of Nearly 3 Million Customers, With About 850 Million Dollars in Public Funds InvolvedThis story
