PARAGUAY · UENO BANK CASE
Itaipu, the giant dam Paraguay shares with Brazil, has asked Paraguay’s prosecutors to help it recover about US$182 million held at Ueno Bank, a digital lender now in central bank resolution. The Paraguayan side announced the move on Saturday 7 November 2026, four days after the Banco Central del Paraguay, the country’s central bank, announced a resolution procedure for the lender.
Key Facts
- The money About US$182 million was held at Ueno on 3 November, including 115.2 billion guaraníes, Paraguay’s currency (about US$18 million).
- The move Itaipu’s Paraguayan side has started legal action before Paraguay’s prosecutors to recover the funds.
- The scale The sum is about 7.6% of the more than US$2.4 billion Paraguay received from Brazil in 2024 to 2026.
- The plant Plant operations and power supply are unaffected on both the Paraguayan and Brazilian sides.
- Power Index Paraguay ranks 10th of 14 in The Rio Times Latin America Power Index, with 35.0 points (November 2026 edition).
In plain English: a state-run dam operator is chasing its own deposits in a bank now under central bank resolution, and both sides of the dam say the power stays on.
Itaipu Takes Its Case to Prosecutors
Itaipu’s Paraguayan side, the state-run management of the dam on the Paraná river, announced on Saturday 7 November 2026 that it had begun legal measures. It opened them before the Ministerio Público, Paraguay’s public prosecutors, to recover money held at Ueno Bank.
The amounts are as of 3 November and total about US$182 million. They comprise US$163.8 million in dollars plus 115.2 billion guaraníes (about US$18 million).
Itaipu says it follows the procedures of the Banco Central del Paraguay (BCP) and wants to exhaust the legal and administrative options. It gave no estimate of how much it expects to recover or when.
Ueno Bank had about 3 million clients, and Paraguay’s prosecutors have charged 27 people in the Ueno case. Paraguay’s Senate removed then-President Santiago Peña on Friday 6 November, and Vice President Pedro Alliana became the new president.
Where the Money Came From
Itaipu says the sums include money received from ANDE, the Administración Nacional de Electricidad, Paraguay’s state electricity utility. They also include transfers between Itaipu’s own accounts to meet contractual obligations.
Itaipu says it began operating with Ueno Bank in January 2025. The US$182 million is about 7.6% of the more than US$2.4 billion in total transfers Paraguay received from Brazil between 2024 and 2026.
The Paraguayan side says it keeps funds only in institutions with the top grades on Paraguay’s local credit-rating scale, AAApy or AApy or equivalent, approved in advance by its executive board. Its financial management produced over US$450 million in returns across all its investments in 2024 to 2026.
Brazil owns half of the dam, as our explainer on Paraguay’s foreign players shows. The Brazilian side said on Friday 6 November that none of the money it manages is deposited or invested in Ueno Bank.
It added that the two sides of the dam manage their finances separately. Both sides say plant operations and power supply are not affected.
What It Means for You
For holders of Paraguayan debt, the case shows that a state-owned entity such as Itaipu, not only private savers, had money at Ueno Bank. That raises credit-risk questions, although Moody’s, a US credit-rating agency, affirmed Paraguay at Baa3, its lowest investment-grade tier, with a stable outlook in July 2026.
Itaipu is among the world’s largest hydropower plants, owned by two states. Our reports on Paraguay’s bond spread and on the key figures in the case track the market reaction and the main numbers.
What Is Not Known
It is not known how much Itaipu will recover or when, because it has given no estimate. It is also unclear whether the money is frozen or could be paid under the deposit guarantee, which covers only up to 228.3 million guaraníes (about US$38,000) per depositor.
More: Paraguay news in English, every day from The Rio Times.
Frequently Asked Questions
Why does Itaipu have money at Ueno Bank?
Itaipu says it began operating with Ueno Bank in January 2025. It says the funds include money from ANDE and transfers between its own accounts to meet contractual obligations.
Is Itaipu’s power supply affected?
Both the Paraguayan and Brazilian sides say plant operations and power supply are not affected. The Brazilian side says none of the money it manages is at Ueno Bank.
How much does Itaipu want to recover?
About US$182 million as of 3 November: US$163.8 million in dollars plus 115.2 billion guaraníes (about US$18 million). Itaipu has not said how much it expects to get back or when.
Sources: Statement of the Paraguayan administration of Itaipu Binacional, 7 November 2026; note of the Brazilian administration of Itaipu, 6 November 2026; announcement of the Banco Central del Paraguay on the resolution procedure for Ueno Bank, 3 November 2026.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. How we use AI · Report an error