Itaipu asserts that the crisis in Paraguay does not affect operations
The Itaipu Binacional assured that the banking crisis in Paraguay does not interfere with the operation of the dam on the Brazilian side. The Brazilian administration denied having resources at the Ueno Bank, while the Paraguayan side holds funds at the dissolved institution. The incident triggered a request for impeachment against President Santiago Peña
Itaipu Binacional said that despite the banking scandal in Paraguay — a country that shares the company’s management with Brazil — the operation of the world’s third-largest hydroelectric plant continues “normally”. The declaration was given in response to the questioning of Metropolis, on Thursday (5/11), about possible impacts of the crisis in the neighboring country.
The case involves Ueno Bank, a digital financial institution dissolved by Paraguay’s Banco Central (BPC) earlier this week. The measure blocked about $850 million in public funds in the country, generating political and economic turmoil.
Brazilian government denies ties to Ueno
In a note, the Brazilian administration of Itaipu Binacional clarified that it does not have funds in bank Ueno, pivot of the crisis in Paraguay. In addition, the company said the case should not affect power generation at the plant. The source did not elaborate on the technical reasons behind this assessment, but stressed that the operations continue within normal.
The position seeks to reassure the Brazilian market and consumers, as Itaipu accounts for a significant portion of the energy consumed in Brazil. The power plant is binational, with shared management between the two countries, but each side manages its own financial resources independently.
Paraguayan side has funds in closed bank
The Paraguayan side of Itaipu has been linked to the recent crisis in the country, involving Ueno Bank. The company is part of the list of public institutions in Paraguay that have funds in the financial institution closed this week. So far, it is unclear how much has been applied to the bank.
This exposure puts the Paraguayan administration under pressure, as blocked resources could compromise the plant’s financial commitments in the neighboring country. The lack of clarity about the values applied increases the uncertainty between investors and Paraguayan citizens.
Political Crisis Threatens President Santiago Peña
In the face of the scandal, Paraguayan politicians, including allies, have opened an impeachment process against the country’s president, Santiago Peña. Elected in 2023, the Paraguayan leader had ties to the bank, and was a shareholder in a company linked to Ueno until March of last year.
Peña resigned on Thursday, but the Paraguay Congress rejected the request. The impeachment process remains under discussion, and could culminate in the loss of parliamentary immunity for the 47-year-old politician. The political crisis adds another element of instability to the region.
Impacts for Brazil and the region
Although the Brazilian administration of Itaipu has denied direct exposure to Ueno Bank, the crisis in Paraguay may have indirect effects. Political and economic instability in the neighbouring country can affect the business environment and bilateral cooperation in infrastructure and energy projects.
In addition, the situation of Ueno Bank raises questions about financial supervision in Paraguay and the management of public resources. For Brazil, which shares the management of Itaipu, it is essential to closely monitor the developments to ensure energy security and stability of operations.
Itaipu Binacional did not inform whether it would adopt additional monitoring measures or if there is a risk of financial contamination between the administrations. The source did not detail the company’s next steps in the scenario.
What to expect in the next few days
The impeachment process against Santiago Peña should dominate the Paraguayan political agenda in the coming weeks. If Congress proceeds with the request, the country may face a period of institutional uncertainty, with reflections on the economy and bilateral relations.
For Itaipu, the focus remains on maintaining energy generation and protecting Brazilian interests. The company has not signaled operational changes, but the scenario requires continued attention from authorities and the electricity sector.
The Boca no Trombone Portal will continue to monitor the unfolding of the crisis in Paraguay and its possible impacts for the Paraná and for Brazil.
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Metropoles.com
