Paraguay bank crisis hinders emergency services

Paraguay's volunteer firefighters say the Ueno Bank crisis is hindering emergency services after the collapse of the lender froze funds used for fuel, equipment and rescue operations.

The volunteer fire service had about $320,000 deposited in Ueno when Paraguay's central bank seized control on November 3, citing serious solvency problems. Oscar Acuna, commander of the Sixth Volunteer Fire Company in Mariano Roque Alonso, said his station had deposited donated funds in the bank and now had an empty cash box.

Acuna said the crisis had forced his team to be more selective about which calls it answers. He said fuel was the biggest concern because it powers generators, pumps, rescue tools and fire trucks.

Paraguay's Volunteer Fire Department president Lorena Canan said an emergency response can cost between $80 and $52,000, depending on the scale of the disaster. About 6,500 volunteers across 140 stations are similarly affected.

Almost three million Ueno depositors lost access to their funds after the bank's collapse. Thousands of people protested in several cities, demanding the return of their money and the removal of President Santiago Pena from office.

Senators impeached Pena on Friday and replaced him with Vice President Pedro Alliana. Pena had owned shares in a group that controlled Ueno until he sold them last year. He is accused of using his influence as president to steer millions in government deposits to Ueno and of hiding or downplaying its financial problems despite warnings about questionable loans and solvency issues.

The Central Bank of Paraguay began restoring deposits through a guarantee fund on Thursday and by Saturday had returned about $160 million to nearly 1.2 million people. The firefighters have not recovered their full funds because the guarantee covers up to $36,000 per account, a fraction of their balance.