Senate to seek details on IPS loans through Ueno Bank and return of promissory notes

Paraguay’s Senate will return to session Wednesday with a 10-point agenda focused in part on how the Social Security Institute, known as IPS, disburses loans to its insured members through Ueno Bank.

The requests for information, presented by Senator Rafael Filizzola of the Progressive Democratic Party, seek a detailed account of the process from credit approval to the transfer of funds. Senators want to know whether beneficiaries can freely choose the bank receiving the money or must open an account with Ueno.

The IPS would also have to provide the contracts that originally linked it with Visión Banco, along with later changes or the continuation of the arrangement with Ueno. Lawmakers want clarification on whether opening a Ueno account is a condition for receiving a loan, what information and forms borrowers receive, how they give consent and whether they can reject that method of disbursement.

The Central Bank of Paraguay would be asked whether any rule prevents the IPS from transferring loans directly to an account selected by each beneficiary. Senators also want information on the mechanisms used for 1,800 to 2,000 monthly disbursements and whether a non-financial institution can legally condition a loan on opening an account at a specific bank.

The inquiry also covers the period since 2020, including any complaints, consultations, controls or observations involving the Central Bank or banking regulator. The IPS must provide figures on new accounts opened through the loans, disbursements made through Visión or Ueno and other banks, as well as any commissions, payments or indirect commercial benefits Ueno may have received.