Get you up to speed: Paraguay’s ousted president charged over banking scandal
Former President Santiago Pena of Paraguay has been charged with breach of trust and administration for personal gain after being impeached related to the collapse of Ueno Bank, leaving nearly half the country without access to their savings. Pena spent the morning at the attorney general’s office in Asunción for questioning and is currently under house arrest.
Prosecutors have also requested pretrial detention for both Santiago Pena and Carlos Carvallo following charges of breach of trust and administration for personal gain. As of Saturday, the central bank reported that 1.2 million customers had received partial or full reimbursement of their insured deposits, while protests continued across Paraguay amid public anger and frustration over the ongoing situation.
Paraguay’s former President Santiago Pena has been charged with breach of trust and administration for personal gain following his impeachment over the Ueno Bank collapse, which has left millions unable to access their savings. In response to the ongoing crisis, newly sworn-in President Pedro Alliana has pledged to assist those affected, while demonstrations continue to escalate, with protesters demanding swift action and accountability.
What remains unclear — It is unknown how long it will take for all customers to receive reimbursement for their deposits.
Paraguay’s former president Santiago Pena charged following banking scandal
Economy|BanksParaguay’s ousted president charged over banking scandal
Santiago Pena was impeached over the collapse of Ueno Bank, which left millions unable to access their accounts.
Published On 7 Nov 20267 Nov 2026
Published On 7 Nov 20267 Nov 2026Paraguay’s former President Santiago Pena has been charged after spending the morning at the attorney general’s office in Asunción for questioning, a day after being impeached over his alleged involvement in a banking scandal that has left nearly half the country unable to access their savings.
The former president, who was placed under house arrest on Friday, was charged over the scandal. The Reuters news agnecy reported that Pena was charged with breach of trust and administration for personal gain.
The scandal centres on Pena’s ties to Ueno, a digital bank that grew rapidly during his presidency, partly through an injection of more than $800m in public funds, and attracted millions of customers.
The bank’s collapse has prompted days of protests across Paraguay, with thousands taking to the streets demanding access to their savings. Some demonstrations have turned violent, with protesters clashing with police.
Pena, who held a stake in Ueno’s parent company until March 2025, has denied wrongdoing, arguing that the bank’s problems were a regulatory matter.
What is Pena accused of?
Among the allegations against Pena are that he used his political influence to direct hundreds of millions of dollars in public funds into Ueno while shielding the bank from regulatory scrutiny as concerns grew over its risky lending practices.
They point to his appointment of Carlos Carvallo, a former executive at the company that later became Ueno, as head of Paraguay’s central bank in 2023. On Saturday, Carvallo was charged with breach of trust, producing false public documents and administration for personal gain.
Pena is further accused of allowing Paraguay’s state pension fund to deposit $355m at Ueno, above legal limits.
Pena had offered his resignation on Thursday, but lawmakers rejected it and pressed ahead with impeachment proceedings to prevent him from having the political immunity he would have gained had he stepped down.
An arrest order was issued shortly after he was removed from office.
On Saturday, after announcing the charges, prosecutors are also seeking pretrial detention for both Pena and Carvallo.
Bank collapse sparks political crisis
The scandal erupted after regulators took control of Ueno on Tuesday over concerns about its solvency, leaving nearly three million people unable to access their savings or use their bank cards.
Paraguay’s central bank said Saturday that 1.2 million customers had already received partial or full reimbursement of their insured deposits.
But that has done little to quell public anger, with many still waiting for their money back. Some protesters have also expressed frustration over Pena’s replacement, Pedro Alliana, who belongs to the same conservative Colorado Party and is himself under investigation in connection with the bank’s collapse.
Alliana, who was sworn in as president on Friday, has pledged to help those affected.