Paraguay's ex-president Peña charged, ordered held in pretrial detention

Paraguayan prosecutors on Saturday, November 7, charged former President Santiago Peña with breach of trust and administration for personal gain over the collapse of digital lender Ueno Bank, and asked a court to hold him in pretrial detention. Judge Humberto Otazú ordered Peña held at a military facility while the case proceeds, saying detention was necessary to ensure he remained in the country. Peña pleaded not guilty through his lawyer. (Photo: Santiago Peña, file photo.)

Ex-central bank chief also charged; assets frozen

Prosecutors also charged former central bank chief Carlos Carvallo with breach of trust, producing false public documents and administration for personal gain; the judge ordered him held in a detention centre. Prosecutors asked for both men's assets to be frozen and for six months to formulate their final case. Prosecutors allege Peña used his position as president to influence decisions by government agencies and state-owned entities to keep large amounts of public money deposited at Ueno, despite his financial ties to the lender; they also accuse him of allowing the state pension fund to deposit $355 million at Ueno, above legal limits. Peña held shares in Ueno's holding company until March 2025 and denies wrongdoing, saying the bank's problems were a regulatory matter. Each charge against Peña could carry up to 10 years in prison.

Senate removed him on Friday; vice-president sworn in

Peña was removed from office on Friday, November 6, in a Senate impeachment trial — 44 of the 45 senators voted for removal, with one absent. Vice-President Pedro Alliana was sworn in as president immediately afterwards and will serve until August 2028. Peña was arrested on Friday and placed under house arrest before appearing at the Attorney General's Office for questioning on Saturday morning. Prosecutors opened three criminal investigations this week into banking supervision, the handling of the collapse and the placement of public funds.

Ueno's collapse froze savings of nearly half the country

The crisis began when the central bank seized control of Ueno on November 3, saying its solvency ratio had fallen below the level required by law. Ueno had about three million customers — more than 60 percent of the country's adults — and held more than $800 million in public deposits; after the seizure, customers could not access their money, and the bank's app, cards and transfers stopped immediately. The central bank said on Saturday that the deposit guarantee scheme had paid out the equivalent of $160 million to nearly 1.2 million savers. Peña, elected president in 2023 and a former International Monetary Fund economist, is regarded as an ally of US President Donald Trump.

(Sources: Reuters; Associated Press; BBC; Al Jazeera, November 7, 2026.)