Original article: ¿Y las platas de los trabajadores?: 11 senadores exigen aclarar si las AFP tienen fondos expuestos a crisis bancaria en Paraguay

Senators Demand Clarification on AFP Funds Amid Paraguayan Banking Crisis

A group of 11 senators is demanding that the Superintendence of Pensions clarify whether Pension Fund Administrators (AFP) have pension funds exposed to the banking crisis in Paraguay and to assess any risks posed to the savings of Chilean workers.

In an official letter addressed to the Senate President, Paulina Núñez, senators Yasna Provoste, Iván Flores, and Francisco Huenchumilla (DC); Claudia Pascual, Daniel Núñez, and Karol Cariola (PC); Beatriz Sánchez and Diego Ibáñez (FA); independents Fabiola Campillai and Alejandra Sepúlveda, and Esteban Velásquez (FRVS) requested information from Joaquín Cortez Huerta, the pension superintendent, regarding any investments the AFP may have in Ueno Bank, which was intervened by the Central Bank of Paraguay on November 3 due to solvency issues.

Ueno Bank commenced operations in November 2023 and, through an aggressive digital strategy, became one of the main financial institutions in Paraguay, amassing 2.9 million clients by 2026, nearly half of the 6.5 million inhabitants of the South American country.

This bank not only manages the private savings of millions of Paraguayans but also handles 9% of the funds of the Institute of Social Security (IPS), which oversees the pensions of 32,000 retirees and part of the funds from the National Electricity Administration (Ande) and the Binational Itaipú Dam, one of the largest energy-producing entities globally.

However, the Central Bank of Paraguay ordered its intervention and dissolution after confirming that its solvency ratio had fallen below 50% of the minimum required, impacting both its clients and pensioners.

This situation has triggered a governance crisis, with President Santiago Peña facing an impeachment trial as he attempted to leave office.

The accusation, presented by a bloc of 35 deputies, attributes a suspected conflict of interest to Peña due to his involvement with Ueno Holding, the appointment of Carlos Carvallo — a former executive of the financial entity — as head of the Central Bank of Paraguay, and for allowing a questionable concentration of IPS pension funds in the bank.

Senators Demand Clarification on AFP Funds Exposed to the Crisis in Paraguay

In light of this challenging scenario, Senator Iván Flores (DC) connected this request to the scrutiny faced by the AFP in Chile over a $7.7 billion loss in derivative contracts tied to U.S. interest rates.

This situation has generated an impact exceeding $11 billion on pension savings. The E Fund, regarded as the most conservative in the system, which includes nearly 770,000 contributors—more than 60,000 of whom are over 60 years old—experienced a 10.39% real decline between January and September 2026, marking the second worst performance since records began, while the D Fund saw a decrease of 6.38% during the same period.

“In addition to the disaster left by the AFP, currently under investigation by the Superintendence of Pensions, we, the senators of the united bench, have requested that the Superintendence inform us about what is happening with the funds of Chilean workers in Paraguay,” Flores stated.

According to the senator, it is crucial to ascertain whether Chilean administrators have investments that could be adversely affected by the Paraguayan financial crisis.

“We are asking for this urgently,” he emphasized in remarks reported by El Mostrador.

The senators’ request includes both direct and indirect investments in Ueno Bank, its parent company Ueno Holding, the Vázquez Group, and other related companies. They are also asking to verify if the administrators hold assets in sovereign bonds, financial institutions, corporations, or Paraguayan investment funds.

Specifically, the lawmakers demanded precise details on the committed sums, financial instruments, involved AFPs, and the classification by fund type, extending their inquiry to operations executed between 2023 and 2026.

Likewise, they requested an assessment of whether the banking intervention led to losses, asset devaluation, or risks concerning Chilean pensions, specifying whether the Superintendence has implemented special oversight actions.

To date, no reports indicate any affected investments or damage to Chilean members; however, the legislators’ goal is for the regulatory body to clarify this situation.

In their document, the senators made it clear that «protecting pension funds requires preventive oversight,» particularly in scenarios of financial insolvency and institutional uncertainty in foreign markets.

Consequently, they urged for the information to be submitted promptly, citing Article 9 of the Constitutional Organic Law of the National Congress.