Itaipu Binacional clarified that the Brazilian side of the plant has no financial exposure to Ueno Bank, the Paraguayan bank that entered liquidation this week.
The financial crisis shaking Paraguay’s banking system drew attention after the intervention at Ueno Bank. The instability, which led to the resignation of President Santiago Peña and the head of the local Central Bank, Carlos Carvallo, raised questions about potential impacts on Itaipu Binacional operations.
However, the Brazilian management of the plant was emphatic in denying any commitment of its assets. In an official statement, the board assured that the hydroelectric operation remains stable, maintaining normal generation and distribution of power to consumers.
Risk Management and Safety Criteria
The state-owned company highlighted that its financial movements follow strict governance standards, always prioritizing safety, liquidity, and the profitability of resources. According to the binational, decisions on where to invest capital respect the specific competencies of each margin—Brazilian and Paraguayan—independently.
“The operation of Itaipu continues normally, with no impact on production or power supply.”
While the Brazilian side has ruled out ties with the institution under intervention, the Paraguayan side presents a different picture. Data reported by the newspaper ABC Color indicated that Ueno Bank was among the banking institutions used by the Paraguayan margin of the hydroelectric plant, recording average balances in dollars and guaranis in recent years.
Impact on Balance Sheets and Next Steps
Historically, Itaipu prioritizes allocating its excess cash to official financial institutions, such as Banco do Brasil and Caixa Econômica Federal. Operations in private banks, when they occur, undergo a rigorous screening by the executive board and detailed risk analysis.
The balance released in the first quarter of 2026 highlighted substantial reserves, with about US$ 984.98 million under management in the Brazilian margin and US$ 574.48 million in Paraguay. While Paraguay deals with the political fallout from the banking crisis and changes in its government ranks, Itaipu Binacional reaffirms that its operational solidity remains shielded from the systemic risks that led to the Paraguayan financial institution’s insolvency.