Paraguay Ex-President Peña Faces Prosecutors After Ueno Collapse Topples Him From Office 1 Day Earlier
Updated
Updated · Reuters · Nov 7
Paraguay Ex-President Peña Faces Prosecutors After Ueno Collapse Topples Him From Office 1 Day Earlier
3 articles · Updated · Reuters · Nov 7
Summary
Santiago Peña appeared at Paraguay’s Attorney General’s Office on Saturday, a day after lawmakers impeached him and placed him under house arrest over the fallout from digital lender ueno’s collapse.
Prosecutors said charges are still being defined but could include influence peddling, while impeachment backers accused Peña of conflicts of interest, manipulating oversight and helping cover up problems involving the central bank.
Pedro Alliana was sworn in on Friday to finish the term through August 2028, giving the ruling Colorado Party a rapid succession as the crisis widened beyond Peña.
Millions of ueno customers are still struggling to access accounts, protests have erupted in Asuncion, and regulators are trying to calm depositors and prevent broader financial-system damage.
Was Santiago Peña's swift impeachment a genuine anti-corruption victory or a calculated political strike to strip his lifetime immunity?
Will Paraguay's missing $850 million in public funds trigger a broader economic collapse after the president's dramatic downfall?
How will the sudden freezing of digital assets for 63% of Paraguay’s adults reshape the nation's trust in modern banking?
How Ueno Bank’s Failure Paralyzed Paraguay: 3 Million Locked Accounts, $850 Million in State Losses, and Presidential Impeachment
Overview
The November 2026 collapse of Ueno Bank, which had rapidly grown to serve 60% of Paraguay’s adults through aggressive marketing and digital expansion, exposed deep structural weaknesses. Central Bank audits uncovered massive uncollateralized insider loans and faulty accounting, causing the bank’s solvency to plummet and triggering an emergency freeze on millions of accounts. This led to economic paralysis, mass protests, and the disruption of pension payments. Political fallout was swift: President Peña, linked to the bank, was impeached and placed under house arrest, while Congress rushed deposit insurance payouts to protect savers. The crisis shook Paraguay’s economy, currency, and global financial reputation.