Paraguay bank crisis drains life from bustling market

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ASUNCION: Maria Martinez, who gets up at 3:00 am every day to sell fruit, household chemicals and other goods at a market in Paraguay’s capital, says sales have hit rock bottom…

ASUNCION: Maria Martinez, who gets up at 3:00 am every day to sell fruit, household chemicals and other goods at a market in Paraguay’s capital, says sales have hit rock bottom since the collapse of Ueno Bank.

“People don’t come because there’s no money. It’s all gone,” the 50-year-old told AFP, her voice trembling. The Nov 3 collapse of one of the country’s largest banks “hit humble people like us very hard”, she said.

The smell of vegetables, meat and herbs fills Asuncion’s main market, a sprawling, colorful maze of more than 20 hectares (50 acres) known as “Mercado 4”.

One sweltering afternoon, nearly 3,000 vendors selling everything from cellphones to sportswear stood ready for customers. Barely anyone showed up.

“Many customers have been left with nothing,” said Martinez, adding that while most prices had remained stable since the collapse, some had jumped.

Ueno began as a small fintech company and quickly grew into a major bank handling state pensions and the accounts of several government bodies. Its seizure amid concerns over insolvency has thrown the usually stable country into turmoil, with tens of thousands of people locked out of their bank accounts.

The collapse sent thousands of angry depositors into the streets and led to the impeachment and arrest of ex-president Santiago Pena, who is accused of using his position to illegally benefit the bank.

On Wednesday, the central bank said it had partially returned savings to all affected depositors, but the move has yet to bring relief to Mercado 4.

“There used to be a lot of people here. This is the heart of Paraguay, and now look: nothing,” said Leongino Johnes, who has bought goods at the market to resell at a border crossing with Argentina since 1992. “This is going to get worse because the end of the year is coming. People are getting desperate. Everyone is getting nervous.”

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