Conmebol Funds Stuck in Paraguayan Bank

Conmebol has $14 million parked in fixed-term savings certificates at Ueno Bank, a Paraguayan financial institution currently under central bank resolution. The South American soccer confederation confirmed this exposure on Monday, clarifying that the funds are not held in a standard checking account. This distinction is critical because the resolution process treats fixed-term deposits differently from daily transaction accounts.

The bank entered this crisis phase after the Central Bank of Paraguay detected that its solvency index had dropped below 50% of the required minimum. The intervention began one week prior to the latest clarifications. Ueno Bank had previously received more than $800 million in public funds, primarily from pension funds, which exacerbated the liquidity pressures on the institution.

The political fallout in Paraguay has been extensive. Former President Santiago Peña was removed from office via an impeachment vote citing poor performance and remains detained as part of the investigation. Carlos Carvallo, who headed the central bank during the crisis, resigned upon the announcement of the intervention and surrendered to authorities on Friday. These events have raised questions about the stability of the financial system and its impact on major institutions like Conmebol.

Conmebol officials stated that the bank's troubles do not threaten the continuity of its tournaments or the payment of prize money. A source within the organization indicated that the body intends to claim its capital immediately, though no specific date was provided. The $14 million represents roughly 2.4% of the $600 million in revenue the confederation recorded during 2025.

The central bank reported that more than 90% of accounts protected by the Deposit Guarantee Fund have already received their refunds. Approximately 128,000 accounts remain pending. These outstanding cases include those holding savings certificates, the same category where Conmebol’s investment is located. The confederation has not released a timeline for recovering its funds or detailed the conditions required for access to the money.

The organization’s public stance focuses on ensuring that competitions like the Copa Libertadores, Copa Sudamericana, and Copa America proceed without financial interruption. While the recovery process is underway, Conmebol continues to manage its investment within the framework set by Paraguayan authorities. The central bank is continuing the resolution procedure to address the bank’s solvency issues.