Paraguay Former President Peña Charged Over Ueno Bank Collapse

The update

Prosecutors in Paraguay have charged former President Santiago Peña with breach of trust and administration for personal gain over the collapse of Ueno Bank. Peña, who was impeached and removed on Friday and placed under house arrest, was questioned at the attorney general’s office in Asunción on Saturday. Prosecutors are also seeking pretrial detention for Peña and for former central bank chief Carlos Carvallo, who was charged on Saturday.

Why it matters

Ueno’s collapse left about three million depositors unable to access savings and pensions after regulators seized the digital bank on Tuesday over solvency concerns. Prosecutors allege Peña directed public funds into Ueno, shielded it from scrutiny and allowed the state pension fund to deposit $355 million there above legal limits. Peña, who held a stake in Ueno’s parent company until March 2025, denies wrongdoing. His successor, Pedro Alliana, has pledged full compensation for those affected.

What to watch

Paraguay’s central bank said 1.2 million customers have already received partial or full reimbursement of insured deposits, but many depositors are still waiting and protests have continued. Watch whether a court orders pretrial detention, how quickly remaining savers are repaid, and whether the investigation widens further.

Sources

• bbc.co.uk — confirms the charges against Peña, his impeachment and arrest, and the number of depositors affected
• aljazeera.com — confirms the charges, Carvallo’s charging, the pretrial detention request and the reimbursement figure

Related coverage

• Paraguay President Santiago Peña Resigns Amid Ueno Bank Collapse
• Paraguay Congress Rejects Peña Resignation and Presses Impeachment Over Ueno Bank Collapse
• Paraguay Senate Removes President Peña, Vice President Alliana Sworn In