PARAGUAY · BANKING

Paraguay’s central bank has answered Senate questions about ueno bank in a sealed report that Congress’s lawyers must now review.

Paraguay’s Senate on Thursday, 8 October, opened a sealed 31-page central bank report that La Nación says covers ueno bank. Senators meet central bank president Carlos Carvallo behind closed doors on Friday, 9 October.

The report matters beyond Asunción because Paraguay courts US and other foreign investors as a stable economy. A public dispute over bank supervision tests that image.

What the Senate Received

Senate president Basilio Núñez of the governing Colorado Party opened the envelope before the press, the Senate said. The Banco Central del Paraguay (BCP) had sent it on Wednesday, 7 October, answering five Senate information requests.

The BCP sent the answers sealed, citing the banking-secrecy duty in Article 6 of its charter law. Núñez said Congress’s lawyers will decide which parts can be published.

The Senate board meets on Friday at 10:00 local time (9:00 a.m. ET) in a reserved session. Carvallo and the superintendent of banks were invited, the Senate said. Última Hora named the superintendent as Holger Insfrán.

What Local Papers Say the Ueno Bank Report Shows

The full text has not been published, but the daily La Nación reported its contents on Friday. It said report BCP/P No. 016, signed by Carvallo, confirms that ueno bank exceeded the legal limit on loans to related parties.

According to La Nación, bank supervisors notified ueno on 5 June and the bank was back within limits by 15 June. Because it corrected the breach within the legal ten-day window, it faced no regularisation plan and no sanctions, the paper said.

La Nación added that a loan-portfolio sale used to fix the breach is under an administrative proceeding. The BCP is checking whether it amounted to prohibited indirect financing.

The National Congress complex in central Asunción at night, pictured in 2014. Photo: Diego Fernando Quint… / Wikimedia Commons (CC BY-SA 3.0)

Who Ueno Is and Why It Is Under Scrutiny

Ueno bank is a digital bank controlled by the Grupo Vázquez business group. It absorbed the older Visión Banco, a deal the report says the central bank board authorised, according to La Nación.

ABC Color said a separate BCP supervision report of 8 June shows ueno extended US$42.5 million, including overdrafts, to Mowi SA. A former ueno deputy manager bought most of that firm in 2025, the paper said.

ABC Color said supervisors found weak credit analysis and funds flowing to group-linked companies. It also reported that ueno holds about US$850 million in funds from public bodies and the IPS social security institute.

Other Banks in the Report

The report also covers Sudameris, Itaú and Atlas, La Nación said. Overdue loans at Sudameris rose 35% between March and August to 696.4 billion guaraníes (about US$120 million).

Sudameris still meets capital rules, the paper reported. Conversions use 5,818.50 guaraníes per US$ (open.er-api.com, 9 October).

Senator Celeste Amarilla of the opposition Liberal Party criticised media for creating uncertainty about the financial system, La Nación reported. Colorado senator Lilian Samaniego said a request for information “is not an intervention, nor a crisis,” Última Hora reported.

What It Means for You

For US investors holding Paraguayan government bonds or company debt, the key point is supervision, not solvency. The report, as described locally, says the only regularisation process in the system since 2020 was that of Cefisa.

Part of the lending to Mowi was in US dollars, including loans of US$12.5 million and US$5.4 million, ABC Color said. On Thursday the BCP posted on X that the financial system “is operating normally”, La Nación reported.

What Is Not Known

The 31-page report has not been published, so its exact wording cannot be checked independently. Accounts of its content come mainly from La Nación.

It is not known whether the administrative proceeding on the portfolio sale will lead to penalties. Ueno bank’s response to the Mowi loan findings is also not known.

What Comes Next

The Senate board meets Carvallo on Friday, 9 October, and will then set a procedure with legal advisers.

The session does not mean any bank has been taken over or sanctioned. The BCP said on X that no intervention is under way or planned at any institution.

Frequently Asked Questions

What is ueno bank?

Ueno bank is a Paraguayan digital bank controlled by Grupo Vázquez. It absorbed the older Visión Banco with central bank approval.

Did the central bank sanction ueno bank?

No sanction has been reported. La Nación says the bank corrected a lending-limit breach within the legal deadline.

Why is the report secret?

The central bank cited the banking-secrecy duty in Article 6 of its charter law. Congress’s lawyers will decide what can be released.

Are deposits in Paraguay safe?

The central bank report, as described locally, says the banks remain solvent. Officials and senators from both camps have urged calm.

What happens on 9 October?

The Senate board questions central bank chief Carlos Carvallo in a closed session. It will then decide how to handle the report.

Sources: Senate of Paraguay; La Nación; La Nación; La Nación (BCP statement on X); Última Hora; ABC Color (all accessed 9 October 2026).