Paraguayan prosecutors have charged impeached former President Santiago Peña with breach of trust and administration for personal gain, seeking his pretrial detention following the collapse of Ueno Bank. Peña, who was removed by the Senate on November 6, 2026, is accused of improperly directing hundreds of millions in public funds into the digital lender despite holding financial ties. Vice President Pedro Alliana has assumed office through August 2028 amid widespread street protests from affected depositors.
Criminal charges against Santiago Peña
- ▪Former President Santiago Peña denied wrongdoing regarding Ueno Bank, maintaining that the financial institution's issues were a regulatory matter
- ▪Paraguayan prosecutors charged former President Santiago Peña with breach of trust and administration for personal gain
Charges against Carlos Carvallo
- ▪Former Central Bank head Carlos Carvallo previously served as an executive at the entity that became Ueno Bank until his government appointment in 2023
- ▪Prosecutors charged former Paraguayan Central Bank president Carlos Carvallo on November 7, 2026, with breach of trust, producing false public documents, and administration for personal gain
Impeachment and arrest of Santiago Peña
- ▪Following Peña's impeachment trial on November 6, 2026, Santiago Peña was arrested and initially placed under house arrest
- ▪Lawmakers pursued impeachment against Santiago Peña specifically to strip him of the political immunity he would have retained by resigning
- ▪The Senate of Paraguay impeached and removed President Santiago Peña from office on November 6, 2026, rejecting his prior offer to resign
Swearing in of President Pedro Alliana
- ▪United States Assistant Secretary of State Juan Pablo Segura stated on November 7, 2026, that Washington looks forward to working with newly sworn-in President Pedro Alliana
- ▪Former Vice President Pedro Alliana was sworn in as President of Paraguay on November 6, 2026, to serve the remainder of former President Santiago Peña's term through August 2028
- ▪Pedro Alliana pledged to assist depositors affected by the Ueno Bank collapse while facing ongoing investigations regarding his connection to the scandal
Regulatory takeover of Ueno Bank
- ▪Paraguayan regulators took control of digital lender Ueno Bank on November 3, 2026, due to solvency concerns, cutting off nearly 3 million depositors from their funds
- ▪Paraguay's Central Bank reported on November 7, 2026, that $160 million had been paid out to nearly 1.2 million Ueno Bank depositors under a state guarantee scheme
Santiago Peña's involvement with Ueno Bank
- ▪Paraguayan prosecutors alleged that Santiago Peña shielded Ueno Bank from regulatory scrutiny as concerns grew over the institution's risky lending practices
- ▪Digital lender Ueno Bank received an injection of more than $800 million in public funds during Santiago Peña's presidency
- ▪Former President Santiago Peña held shares in the controlling holding company of Ueno Bank until March 2025
Demonstrations following the banking collapse
- ▪Protesters assembled outside Santiago Peña's home, demanding his transfer to a regular prison following his impeachment
- ▪Thousands of depositors staged protests in Asuncion demanding access to their savings, with some demonstrations escalating into violent clashes with police forces
Story comments
Loading comments…