Paraguay State Institutions Funnel Billions into Ueno Bank After IPS Limit Reached

State institutions in Paraguay injected over G. 5 trillion (more than $850 million) into Ueno Bank, a financial institution linked to associates of President Santiago Peña, within a 30-month period. The deposits, primarily in the form of "at-sight" accounts that yield no profit for the state, were made by various state entities and the social security institute (IPS).

Reports from the Ministry of Economy and Finance confirm that these state interventions began shortly after the IPS reached its legal investment limit. This maneuver allowed Ueno Bank, part of the Grupo Vázquez, to manage substantial public funds. According to official documents, Ueno Bank captured over G. 5 trillion in state and IPS funds in just 30 months. This amount is double the bank's own effective equity, which was reported as G. 2.2 trillion at the end of 2025.

The influx of public money into Ueno Bank appears to have been strategically timed. The irregularity began in February 2025, when the IPS deposited G. 1.9 trillion, exceeding the legal limit of 10% of its investment portfolio as stipulated by Law 7235/2023. While the IPS eventually had to acknowledge this excess, other state organizations stepped in with "at-sight" deposits. These deposits, while offering no interest to the state, provided immediate liquidity to the bank. The scale of these deposits escalated rapidly from January 2025, reaching G. 1.8 trillion by July and surpassing G. 2.2 trillion by August.