Former Paraguayan President Santiago Peña placed in custody after the collapse of Ueno Bank

Removal and arrest

On Saturday, a court in Paraguay ruled to place the removed president, Santiago Peña, in preventive detention after criminal charges were brought against him following the collapse of Ueno Bank. Judge Humberto Otazu ordered that he be held at the headquarters of the presidential guard regiment in the capital, Asunción. The decision came hours after prosecutors formally charged the former president with breach of trust, illicit enrichment through self-dealing, and falsification of official documents, Anadolu reports.

Timeline of the crisis

Peña was questioned at the attorney general's office for nearly three hours, after which he was returned to the custody of the military police. He was initially detained late on Friday night at a private residence, where police had to disperse a crowd of protesters who had gathered. The day before, on Friday, the Senate voted to remove him from office for 'official misconduct' and 'unsatisfactory performance of duties' over his administration's handling of the financial crisis. The crisis began on November 3, when the Central Bank of Paraguay, citing severe insolvency, placed Ueno Bank under intervention. The bank's collapse froze the deposits of 2.94 million customers — nearly half the country's population — including government institutions and pension funds such as the state Social Security Institute. The sudden loss of liquidity triggered mass protests in Asunción, which were dispersed by police.

Charges and the new president

According to the prosecution, Peña's administration allowed high-risk government deposits to be placed with a private financial institution beyond legally established safety thresholds, directly tying the government to the bank's failure. While the case against Peña continues, the newly installed president, Pedro Aliana — previously vice president and a member of Peña's ruling Colorado Party — began his first full working day on Saturday. His administration immediately faced pressure over promises of full compensation for depositors; the executive branch's focus is on stabilizing the financial system and restoring public trust.