ASUNCION, Nov 9 (Reuters) - Paraguayan President Pedro Alliana on Monday nominated economist Jorge Schreiner to head the central bank, following a crisis triggered by the intervention in digital bank Ueno.
Schreiner served on the central bank's board for two years until 1999 and led the country's securities commission for a decade until 2013. His appointment was approved by Congress, which also named Fernando Rivarola, former head of the national banking regulator, to the central bank's board of directors.
Rivarola raised the alarm about the situation at Ueno in a report in July that was leaked to local media in early October, sparking a crisis that resulted in sudden political upheaval in the South American country and led to the removal of previous central bank chief Carlos Carvallo and former President Santiago Peña.
Peña and Carvallo were charged by prosecutors over alleged ties to the bank after the former president was removed from office on Friday through an impeachment trial in Congress. Both have been placed in pretrial detention.
Alliana said on X that Schreiner's appointment is aimed at "strengthening the central bank's institutional framework and restoring the confidence of the Paraguayan people."
The bank's collapse has left millions of customers struggling to access their accounts and triggered a wave of social and political turbulence in Paraguay.
Alliana, who took office on Friday, also appointed Felix Sosa as president of the National Electricity Authority. Paraguay's new President also said on X that he received a call from US Secretary of State Marco Rubio, during which they reaffirmed their commitment to continuing to work together.
(Reporting by Daniela Desantis; Writing by Aida Pelaez-Fernandez;Editing by Chizu Nomiyama and Natalia Siniawski)
