Impeached Paraguay leader charged over shock implosion of bank

Former Paraguayan president Santiago Pena was charged with breach of trust and mismanagement for personal gain following the collapse of Ueno Bank, according to Paraguayan prosecutors. Pena, who served as the country's youngest-ever president, was impeached and removed from office by the Senate just three days after the bank's implosion, which left millions of people without access to their funds and triggered widespread protests.

The indictment alleges that between 2023 and 2026, Ueno Bank SA received deposits and loans from public and pension entities, while also granting loans to companies linked to the bank's economic group in an irregular manner. Pena, who held shares in Ueno Holding until last year, was questioned for about three hours over his connections to the bank.

Prosecutors requested that he be held in preventive custody and that his assets, as well as those of former Central Bank president Carlos Carvallo, who faces the same charges, be frozen. Carvallo, a former Ueno executive, is scheduled to be interrogated by prosecutors later on Saturday. Pena was taken into custody within an hour of his Senate impeachment trial and was initially held overnight. Protesters gathered outside his home, demanding that he be sent to a regular prison.