Itaipu Binacional said it is pursuing legal action to recover about $182.2 million deposited at dissolved Ueno Bank. (Foto: Instagram)
Itaipu Binacional’s Paraguayan side had deposits worth about 1 billion Brazilian reais at Ueno Bank, the digital lender dissolved by Paraguay’s central bank. Itaipu said it has begun legal efforts to recover the funds, while stating that the situation does not affect its normal operations. The bank’s failure triggered a financial crisis that, according to the report, led to the impeachment and arrest of former Paraguayan President Santiago Peña.
In a statement posted on Saturday, Nov. 7, 2026, Itaipu said its deposits totaled $163.8 million and 115.2 billion Paraguayan guaranies. The combined amount was approximately $182.2 million, or about R$1.003 billion based on the dollar exchange rate in Brazil on Friday, Nov. 6. Itaipu said the balance represented 7.6% of the funds received through remittances from Brazil since the company began operating with Ueno Bank in January 2025.
The company also reported that Paraguay had historically high levels of available cash from 2024 to 2026, with remittances from Brazil totaling $2.409 billion during that period. Itaipu said those funds included revenue received from the National Electricity Administration, known as Ande, as well as transfers among the entity’s accounts. The company said the money flow was intended to meet contractual obligations and commitments under agreements.
Ueno Bank was dissolved on Tuesday, Nov. 3, after Paraguay’s central bank determined that its solvency had fallen to less than half the required level. The lender had 2.9 million customers, about 40% of Paraguay’s population, and was the country’s largest digital bank. After the dissolution, thousands of customers were unable to access their deposits.
Paraguay’s Public Prosecutor’s Office accused the bank of manipulating its financial position to make its operations appear credible. Prosecutors also alleged that it issued loans and other financial concessions to companies linked to the bank’s controlling group. These are accusations, not findings described as proven in the report.
The bank’s controlling group had Peña as a shareholder until last year, according to the report. Paraguay’s Congress approved his impeachment over two days: the Chamber of Deputies unanimously opened the process on Thursday, and the Senate voted to remove him on Friday. Peña is also under criminal investigation over alleged involvement in the financial scandal.
On Friday night, the National Police arrested Peña at his home in Asunción, the Paraguayan capital. On Saturday, a judge ordered his pretrial detention following a request from prosecutors. Itaipu said it had taken legal action through the State Attorney General’s Office to seek recovery of its deposits and was also following procedures set by the Central Bank of Paraguay, with the stated aim of pursuing all applicable legal and administrative measures.
