PARAGUAY · BANKING
Key Facts
- The country Landlocked South American exporter of soy, beef and hydropower, home to more than 6 million people.
- Why it matters ueno sold US$350 million of dollar bonds to international investors, so its health concerns foreign lenders.
- Why now On Thursday 29 October 2026 the bank unveiled a capital plan and a central bank director resigned.
- What happened ueno plans US$100 million of new capital, half from its owner in November, half from local investors.
- What it means for you Holders of ueno bonds should watch central bank approval of the share sale, due within about 60 days.
- Power Index Paraguay ranks 10th of 14 in The Rio Times Latin America Power Index, with 36.0 points (October 2026 edition).
In Plain English
Tier 1 capital is the core cushion a bank holds to absorb losses, measured as a share of its risk-weighted assets. Ueno puts the central bank’s minimums at 8% for Tier 1 and 12% for total regulatory capital.
The Banco Central del Paraguay (BCP) is the central bank and supervises every bank in the country. The Instituto de Previsión Social (IPS) is the state social security fund that holds retirement savings for private-sector workers.
Paraguay’s ueno bank announced a US$100 million capital plan on Thursday 29 October 2026, the same day a Paraguayan central bank director resigned. US investors have a stake in the story because ueno sold US$350 million of dollar bonds in an international offering.
The bank says its controlling shareholder, U Holdings, will add US$50 million in November 2026 and that local private investors will buy a further US$50 million of new shares. The share sale still needs approval from the central bank, which supervises Paraguayan banks, and the bank expects to finish it within 60 days.
The announcements follow weeks of Senate questions, union protests and a rating warning about the bank’s capital. Earlier reports cover the fight over the central bank board and the union call for the pension fund to leave ueno.
What the Capital Plan Does
Ueno says the plan would lift its Tier 1 capital ratio from 11.7% to 14.9% and its total regulatory capital ratio from 13.8% to 15.9%. On the bank’s own figures both ratios already sit above the central bank minimums, so the plan widens an existing cushion.
Together with US$54 million of retained profit to 30 September and a US$17 million contribution from OTP Bank in May 2026, the new money would lift capital strengthening this year above US$170 million. The bank says it has more than 3 million customers, including 1.2 million Paraguayans who entered the banking system for the first time since 2021.
Why the Bank Is Under Pressure
On 19 October the bank told the public that Fitch, a credit rating firm, kept its international rating at BB on 16 October but moved the outlook from stable to negative. BB sits below the investment-grade line, and the bank links the outlook change to pressure on capital from fast balance-sheet growth and a large stock of intangible assets.
The bank says Fitch’s own capital measure stayed at 10.3% at the end of June 2026 and that a return to a stable outlook depends on recovering above 13%. It also reports overdue loans of 0.6% in June 2026, which it presents as healthy asset quality.
Senators have pressed the central bank since September for details on how it supervised ueno and its dealings with related companies. President Santiago Peña said on Tuesday 27 October that the central bank has the legal tools to supervise banks and that calm is needed because the financial system is very delicate.
A Central Bank Director Quits
Carmen Marín, an economist who sat on the central bank board, resigned on Thursday 29 October 2026, and no reason for her departure has been given. Her five-year term, which began in 2022, had about a year left to run.
Marín served earlier as deputy economy minister from 2020 to 2021 and then headed the presidency’s management unit until 2022. Her exit came two days after Peña publicly backed the central bank.
The Pension Fund Idea That Stalled
On Wednesday 28 October 2026 Carlos Pereira, a former IPS board member and adviser, proposed that the pension fund put US$30 million from a contingency reserve into ueno as capital. In return the IPS would become a shareholder with a seat on the bank’s board.
IPS president Derlis León said on Thursday 29 October that the fund’s technical team recommends against the idea and that the institute will not accept it. Unions and retiree groups had demanded on Tuesday 27 October that the IPS pull its deposits from ueno, so the proposal landed in a tense debate.
What It Means for You
Holders of ueno’s dollar bonds and US investors in Paraguayan banks should watch two milestones: the US$50 million owner contribution due in November 2026 and the central bank decision on the share sale, expected within 60 days. A higher capital ratio targets the pressure named in the negative outlook, but the outlook stays negative until the rating firm decides otherwise.
Travellers and US companies operating in Paraguay face no new rule from the announcements. The episode matters mainly as a test of bank oversight in a country that courts foreign capital, which the Paraguay country page follows.
What Is Not Known
No reason has been given for Marín’s resignation, and it is not known who will replace her. It is also unclear whether the central bank will approve the US$50 million share programme and on what terms.
The bank says it hopes the new capital will prompt an early review of its rating outlook, but no review date has been announced. Whether senators will seek further changes at the central bank also remains open.
Frequently Asked Questions
What is ueno bank?
Ueno is a Paraguayan digital bank that says it serves more than 3 million customers. It sold US$350 million of bonds to international investors.
How much capital is ueno raising?
Ueno plans US$100 million, with US$50 million from its controlling shareholder in November 2026 and US$50 million from local private investors. The share sale needs central bank approval and is expected within 60 days.
Who is Carmen Marín?
Carmen Marín is an economist who joined the Paraguayan central bank board in 2022 after serving as deputy economy minister. She resigned on Thursday 29 October 2026, and no reason has been given.
Is Paraguay’s financial system at risk?
President Santiago Peña says Paraguayan banks’ capital and profit levels are strong, noting that they earned over US$700 million in the first nine months of 2026. Fitch’s negative outlook, set on 16 October, concerns ueno alone.
Sources: ueno bank, capitalization plan of US$100 million, 29 October 2026; ueno bank, Fitch rating statement, 19 October 2026; public statements by President Santiago Peña (27 October 2026), IPS president Derlis León (29 October 2026) and the central bank (29 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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