The key facts

  • Former Paraguayan president Santiago Peña was detained on a prosecutor's warrant over the Ueno Bank collapse case
  • Nearly three million bank customers faced frozen accounts after the Central Bank's decision on November 3
  • Presidential powers passed to Vice President Pedro Aliana, who is to govern until August 2028

Detention after impeachment

In Paraguay, police detained the country's former president Santiago Peña over the collapse of Ueno Bank, which left nearly three million customers unable to access their accounts. This was reported by the newspaper ABC Color (a summary is cited by Life.ru). The basis was a warrant issued by the prosecutor's office, which is investigating alleged financial machinations surrounding the bank: Peña is suspected of breach of trust and possible involvement in the embezzlement of funds. The investigation is being conducted by the unit for combating economic crimes and corruption.

Timeline of the crisis

The financial crisis broke out on November 3, when the Central Bank of Paraguay placed Ueno Bank under compulsory administration after detecting a serious deterioration in the institution's solvency. As a result, the accounts of nearly three million customers were frozen; the bank also held significant funds belonging to government organizations. Investigators are examining the alleged issuance of large loans to companies linked to the bank's owners. Peña previously owned a stake in a holding company connected to the financial institution, but, according to him, sold it in 2025; he has rejected accusations of wrongdoing. The crisis triggered mass protests in Asunción demanding the return of savings and that those responsible be held accountable.

Removal from power

The detention came after Peña was removed from office through impeachment: the Senate of Paraguay voted unanimously for it, with all 44 senators present supporting the removal. The opposition saw a possible conflict of interest for the president in the banking scandal due to his past ties with the financial institution. As Life.ru previously reported, the opposition insisted specifically on the impeachment procedure after an attempt to arrange a voluntary resignation ran into obstacles in parliament. Presidential powers passed to the 52-year-old vice president Pedro Aliana, who is to serve out his predecessor's term, which runs until August 2028.