USD 852 million in ueno bank: public funds, IPS and the path to recovery

ECONOMIC INVESTIGATION · 6 NOVEMBER 2026

Two figures dominate Paraguay's public debate after ueno bank entered resolution: approximately USD 852 million in public-sector resources and USD 355 million attributed specifically to the Social Security Institute (IPS). Neither is a confirmed loss. The figures cover different populations and reference dates and must be reconciled before treating them as a verified balance on the resolution date.

Where USD 852 million comes from

Reporting based on September 30 Ministry of Economy and Finance (MEF) tables identifies G. 3.608 trillion and USD 233.4 million in public deposits at ueno bank, equivalent to about USD 851.98 million at the exchange rate used in that report. This is a historical exposure, not a final loss estimate or proof of the precise November 2 balance.

What IPS reported

IPS finance manager Gladys Vera reported exposure of about USD 355 million, approximately 9% of the institution's investment portfolio, including time placements and sight balances. An earlier September portfolio breakdown published by the press gave a total of roughly USD 348.5 million across deposit certificates, financial bonds and available balances. The two figures have different dates and must not be subtracted without reconciliation.

What the central bank has confirmed

On November 3 the BCP announced that its board initiated ueno bank's resolution on November 2 because the bank's solvency ratio had fallen below half of the minimum required after accounting adjustments. It has not guaranteed full recovery of IPS investments or all public resources.

Why the legal status of each asset matters

Under Law 2334/2003, eligible public deposits from the social security system have a particular priority among claims in bank resolution. This protection cannot automatically be extended to IPS financial bonds. Claim recognition, legal ranking, available assets and actual payment dates must be established separately.

What happens to pensions?

IPS says November pensions and its annual additional benefit are funded, with the additional benefit scheduled from November 17. It is migrating payment arrangements for approximately 32,000 beneficiaries who previously used ueno bank and has coordinated with seven alternative banks. Immediate pension payment arrangements and the long-term recovery of invested reserves are different issues.

Warnings about concentration

Reporting on an audit by the Comptroller General stated that ueno bank's share of IPS guaraní-denominated deposit certificates rose from 1.0% in 2023 to 8.4% in 2024 and 19.7% in 2025. That percentage refers to one portfolio category, not the whole investment portfolio. IPS management has defended the original placement decisions as based on official BCP indicators and established technical procedures. Concentration is a subject for documentary review, not proof of wrongdoing on its own.

What still needs to be established

An official institution-by-institution reconciliation is required, including the exact balance as of resolution, instruments, maturities, interest, recognized creditor rank, resolution mechanism and amounts actually collected. A simple difference between USD 852 million and USD 355 million does not identify the other institutions' verified balances.

Three tests of recovery

Authorities need to distinguish claims filed, claims legally recognized and sums actually paid. The systemic economic effects also depend on uninterrupted pension and public-service payments, market liquidity and transparent disclosures.

The exposure is approximately measurable. The final financial loss and recovery timetable remain undetermined. This is an ongoing investigation, not a finding of individual misconduct.

Fuentes y documentos

Ilustración conceptual original de Radar Inversión; no representa operaciones ni instalaciones reales.