ASUNCION: Paraguay has started paying advances to Ueno Bank depositors who lost access to their funds with its dramatic takeover earlier this week, a Central Bank official told AFP on Friday.

Chaos engulfed the small South American nation when Tuesday’s seizure of Ueno blocked the accounts of almost half the population.

Huge protests have rattled Asuncion, with President Santiago Pena resigning but still facing impeachment over the implosion of the bank linked to him.

Advance payments to impacted depositors began on Thursday afternoon, Jose Maciel of the Central Bank’s Deposit Guarantee Fund told AFP.

The first phase concerns clients with deposits of up to around $1,600, without loans and with an account at another bank or insitution in Paraguay, Maciel said.

The next beneficiaries “will be announced progressively over the course of the payment process,” he said, without specifying how many people had received payments so far.

The Central Bank took control of Ueno over concerns for its solvency.

Ueno began as a small fintech company with a digital-first model that attracted many low-income customers.

It rapidly grew into a major bank that handled state pensions and the accounts of several government entities.

The opposition accuses Pena of conflict of interest, which he denies.

Until last year, the US-backed leader had a stake in the group that controlled Ueno.