Paraguay's impeached former President Santiago Pena has appeared before prosecutors following a financial crisis that left half of the country unable to access their bank accounts. Mr Pena was taken to the Attorney General's Office after being placed under house arrest on Friday.
Bank Collapse and Protests
The central bank was forced to step in after digital lender Ueno went bust last week, leaving around half the population without access to their savings. The crash sparked a run on Ueno, with long queues of desperate savers forming outside branches in the capital Asuncion.
Protests were held across the country on Thursday, with thousands taking to the streets, and Mr Pena was impeached and placed under house arrest the following day.
Impeachment and Allegations
Lawmakers who backed Mr Pena's impeachment accused him of conflicts of interest, manipulating regulators and participating in a cover-up involving the central bank. Senator Rafael Filizzola said: 'We are facing the biggest corruption scandal in our democratic history – a tremendous blow to the state, to private citizens, and to the country's credibility and image.'
Mr Pena, who was a shareholder in Ueno's holding company until March 2025, has denied wrongdoing. His lawyer Ricardo Preda described the allegations as a 'reckless' and 'opportunistic'.
New Leadership and Compensation Pledge
Reports claim as many as three million customers remain unable to access their savings and pensions. Mr Pena's rapid impeachment has seen vice president Pedro Alliana take power, with the Colorado Party politician sworn in on Friday.
Mr Alliana promised savers that their money is safe, saying: 'Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated.'
