Espínola rejects changes to IPS emergency law and awaits BCP response on Ueno

Deputy Mauricio Espínola said he was surprised that lawmakers aligned with the ruling party had joined concerns over the Instituto de Previsión Social’s multimillion-dollar funds at Ueno Bank. He nevertheless welcomed their request for information from the Central Bank of Paraguay and said he hoped the institution would answer them.

Espínola said he had repeatedly sought information about the IPS funds at the bank, but that his requests had generally been blocked, ignored or attacked. “Many times, people in government get angry with those who exercise oversight,” he said, urging the Central Bank to respond not only to the latest request but also to pending requests from both chambers of Congress.

The lawmaker also pointed to a bill that has remained stalled. The proposal would impose prudential limits on the concentration of IPS and public-sector resources in the national financial system. Espínola said he introduced it as a safeguard against a banking crisis like the one experienced in the 1990s and argued that the Cartista majority should now support it.

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Many times, people in government get angry with those who exercise oversight.

He rejected Senate changes to a bill declaring a state of emergency at IPS and creating an extraordinary regime to clean up its finances and protect its sickness and maternity fund. Espínola said the Senate had transformed the initiative, expanding it from four original articles to 18. He identified Articles 17 and 18 as especially controversial and said lawmakers would review them with their teams.

“After speaking with some colleagues, I think we will reaffirm the lower house version,” Espínola said, while acknowledging that the Senate has the final word as the reviewing chamber. He also called on Isaías Fretes to appear as often as necessary to explain the institution’s decisions, citing shortcomings previously flagged during the administration of former IPS president Jorge Britez, who is now facing charges.

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After speaking with some colleagues, I think we will reaffirm the lower house version.