Ueno

Paraguay’s Senate approved requests for information from the Central Bank of Paraguay about Ueno Bank’s operations and expansion, amid questions about public deposits, possible conflicts of interest, and political rivalries involving the institution and Banco Basa.

A teachers’ strike scheduled for September 17 and 18 in Paraguay challenges the 2027 budget bill, which excludes agreed raises and demands, while senators Blanca Ovelar and Celeste Amarilla disagree over the causes of the education crisis, the results of the 2025 PISA assessment given to 6,507 students, the Ñe’ẽry program, which received US$12 million in 2023, and criticism of teacher training and meritocracy; Amarilla also fears a return of banking crises and mentions Banco Atlas and Ueno, a Paraguayan digital bank.

Santiago Peña said there is no break with Horacio Cartes, attributed criticism to the municipal elections, defended clarifications over a request for information from the Central Bank involving Ueno Bank, and called for continued dialogue with doctors threatening a strike on September 21 and 22.

Paraguay’s Senate sent the Central Bank 31 questions about Ueno Bank’s operations and the oversight it received, including transactions with companies linked to Grupo Vázquez, the sale of a US$35 million loan portfolio and possible corrective measures, with 15 days to respond.

According to the organizers, the 3rd Taiwan–Paraguay Technology Forum, scheduled for September 11 and 12 at the Central Bank of Paraguay in Asunción, will bring together experts to discuss applications of artificial intelligence in areas including industry, agriculture, health, energy, logistics, finance, cybersecurity and digital government, with free admission upon prior registration.

Paraguay’s Congress has begun reviewing the 2027 General National Budget, estimated at G. 166.3 trillion and listing health care among its priorities, while the Senate prepares requests for information from the Central Bank about Ueno Bank and lawmakers negotiate doctors’ salary demands.

Paraguay’s Chamber of Deputies will again review a bill that could allow different financial products from the same institution to be counted separately, while IPS investments in Ueno Bank exceeded the legal limit described in the sources.

Ueno Bank’s solvency ratio could fall from 12.4% to about 6.12% at the end of 2025 if G. 876.7 billion invested in UPay and Wepa were deducted, below the legal minimum of 8% for Tier 1 capital.

Paraguay’s Senate is investigating whether IPS requires beneficiaries, retirees and pensioners to open accounts at Ueno Bank to receive loans, following a complaint of a possible monopoly and the concentration of ₲5.1 trillion in state funds at the institution.

Ueno Bank expanded its public deposits in Paraguay to US$862 million in July, capturing US$52 million in one month and sparking debate about limits for state funds in financial institutions, while denying irregularities and rebutting criticism about its investments and intangible assets.

Ueno Bank reported intangible assets related to software systems for 2025 whose book value is around three times higher than the corresponding assets of nine other major banks in Paraguay combined. The unusual scale of the figure has raised questions within the financial sector. According to opposition lawmaker Mauricio Espínola, the Paraguayan banking association Asoban may also have approached the Central Bank over the matter.

The National Development Bank postponed technical details to later stages in the 135.853 billion guaranis bid for a new banking core. ABC Color alleged possible favoritism toward the Vázquez Group, but the official DNCP registry does not prove this accusation.

Ueno Bank, which is controlled by a former business partner of President Santiago Peña, held twice its net worth in public funds in June, a value that exceeds legal limits. Meanwhile, the Social Security Institute (IPS) has not fulfilled its promise to withdraw the deposits, and the bank is still settling a heavy debt inherited from the defunct Visión Banco.

The IPS, the largest holder of public funds in the Paraguayan banking system, is considering investing abroad after reaching its legal investment limit in the sector.

The government of Santiago Peña used funds from Itaipú and Yacyretá to finance an advertising campaign in allied media outlets during the World Cup, according to a complaint by Senator Yolanda Paredes.

Colorado Senator Carlos Liseras admitted to serious and long-standing failures at the IPS, attributing them to past administrations, but avoided commenting on the allegations of favoritism towards Banco Ueno, of which President Santiago Peña was a partner.

The IPS, Paraguay's social security institute, is facing a multifaceted crisis involving allegations of fund diversion to Ueno Bank, a chronic shortage of medicines, internal turmoil, and pressure from Congress, which is debating an emergency bill.

The Vázquez Group, whose main bank received billions in public deposits from the social security institute IPS, expanded rapidly during the Peña administration, while the bank defends the legality of the operations.

Non-performing loans in the Paraguayan banking system are a cause for concern, with the National Development Bank (BNF) leading at 3.16% and Ueno Bank in second place at 2.74%, although the majority of banks maintain over 90% of their loans in the adequate solvency category.

Opposition Senator Rafael Filizzola accuses the Peña administration of a lack of control and impunity in corruption cases, citing as examples the irregular deposit of IPS (the social security institute) funds in Ueno Bank, the alleged leniency towards former Seprelad (Secretariat for Money Laundering Prevention) head Óscar Boidanich, the shelving of complaints regarding Itaipú, and the president's acquittal in an asset investigation.

The Paraguayan financial system is facing a security crisis marked by digital attacks that have drained accounts and created fraudulent loans, in addition to violent bank robberies, including explosions in Santa Rita, Alto Paraná, with the possible involvement of security agents.

Consumer credit in Paraguay grew by 42% through May, reaching G. 35.52 billion, while the International Monetary Fund (IMF) warns of the risks of over-indebtedness, especially among lower-income families.

The director of Paraguay's social security institute, the IPS, admitted that Ueno Bank exceeds the legal limit for the concentration of pension funds, which an opposition senator called "ridiculous" while calling for an investigation. Meanwhile, President Santiago Peña denied any violation and criticized the public disclosure of the case.

Senator Rafael Filizzola demanded explanations from IPS president Isaías Fretes over the transfer of billions of guaranis from the social security fund to Ueno bank, which is linked to a former business partner of President Santiago Peña, following the relaxation of rules that reduced financial security requirements for the institution.