Paraguay's Senate approves Schreiner to lead central bank
Jorge Schreiner will head the central bank as it handles the collapse of Ueno Bank. Senators demanded tighter controls.
Paraguay's Senate approved Jorge Luis Schreiner Marengo as president of the Central Bank of Paraguay (BCP) on Monday, in an extraordinary session. In the same vote, senators confirmed Fernando Javier Rivarola Angulo to the bank's board.
The chamber first sat as its constitutional affairs committee, issued a favorable opinion on both nominees and then voted electronically. Sen. Silvio Ovelar put forward Schreiner; Sen. Natalicio Chase, Rivarola. The Senate did not say how many votes each received, though support was broad. Basilio Núñez, the chamber's president, presided.
The nominations came from the executive branch under the BCP's charter, Law 489/1995.
Senators praised the technical credentials of both men. The debate turned on something else, though: how the BCP supervised Ueno Bank, the Paraguayan digital lender now in resolution. Lawmakers called for an audit of the bank's internal controls, faster responses to technical alerts and tougher oversight of the financial system.
Schreiner said that when he does not know something, he will admit it and look into it, and he pledged to protect the institution's credibility. Rivarola promised to find a solution for affected savers as soon as possible and an orderly exit for Ueno.
The handover comes four days after the country changed presidents. The Senate removed Santiago Peña in an impeachment trial, and Pedro Alliana took the oath to serve through 2028, with the banking crisis still open.
The BCP opened Ueno's resolution after its solvency ratio fell below half the required minimum.
Ueno's savers will be paid first, up to 10 million guaraníes, Paraguay's currency, within a deposit guarantee of up to 228.3 million per depositor.
