# Paraguayan Side of Itaipu Holds Nearly R$ 1 Billion in Ueno Bank Itaipu Binacional faces recovery challenges after Paraguayan Central Bank initiates resolution process for Ueno Bank. - **Source:** [Folha de S.Paulo](https://www.folha.uol.com.br) - **Published:** 2026-11-08 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/e519d90f-2a90-42c8-9805-1bcd09da2f65 ## Significant Asset Exposure The Paraguayan side of the Itaipu Binacional dam held approximately R$ 1 billion in Ueno Bank as of November 3, 2026. This figure comprises 115.2 billion guaranis and 163.8 million US dollars. The disclosure occurred following the Paraguayan Central Bank's decision to initiate a resolution process for the financial institution. ## Legal Recovery Efforts Itaipu has officially commenced legal actions through the State Attorney General's Office to recover these frozen funds. The binational entity is actively monitoring the Central Bank's liquidation procedures to protect its capital. Although management intends to exhaust all administrative and legal avenues, they have not provided a specific recovery timeline. ## Operational Impact Assessment Despite the magnitude of the frozen assets, the binational administration stated that the situation does not affect the normal development of Itaipu's activities. The Brazilian side of the dam confirmed it holds no resources within Ueno Bank, noting that each country manages its respective financial applications and treasury operations independently. ## Context of Capital Inflow The trapped funds represent 7.6 percent of the 2.4 billion US dollars that entered Paraguay as remittances from Brazil between 2024 and 2026. This period saw record cash levels in Paraguay due to a strategic shift toward more equitable resource distribution between the two countries managing the massive hydroelectric power plant. ## Political and Legal Turmoil The relationship with Ueno Bank began in January 2025 under the administration of former President Santiago Peña. Following his impeachment on November 6, 2026, Peña faces a preventive detention order. He is currently under investigation for charges including breach of trust and administration for personal gain related to the bank case. ## Transparency and Reporting Disclosed figures significantly exceed previous estimates provided by Itaipu. On October 13, the company reported average balances of only 49.8 million US dollars and 27.7 billion guaranis. The institution maintains that it only invests in entities with high risk ratings, such as AAApy or AApy, to ensure the safety of its cash. ## Broader Institutional Exposure Itaipu's exposure is approximately eleven times larger than that of Cajubi, the pension fund for Paraguayan employees of the plant. Cajubi reported holding 100.7 billion guaranis in Ueno Bank, alongside additional investments in debt securities issued by the Grupo Vázquez, which is the primary controller of the now-collapsed Ueno Bank. ## Financial Management Strategy Between 2024 and 2026, the management of available resources generated over 450 million US dollars in returns for the entity. The company emphasizes that it diversifies its cash holdings across multiple banks to mitigate risk. Future developments depend on the ongoing resolution process managed by the Paraguayan Central Bank authorities. ## Sources covering this story - https://redir.folha.com.br/redir/online/emcimadahora/rss091/*https://c-level.folha.uol.com.br/negocios/2026/11/lado-paraguaio-de-itaipu-mantem-quase-r-1-bilhao-no-ueno-bank.shtml — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._