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Prosecutors seek preventive custody for Paraguay President Santiago Pena over Ueno Bank collapse
Prosecutors charge Paraguay's former President Santiago Peña with breach of trust and seek his preventive custody after the Ueno Bank
Key points
- Prosecutors charged former President Santiago Peña with breach of trust and requested preventive custody.
- The Ueno Bank collapse froze accounts for nearly 3 million Paraguayans and triggered the president's impeachment.
- Business sales fell up to 80% and 32,000 pensioners lost payments due to the bank's insolvency.
Why it matters. The collapse of a major digital lender has destabilized Paraguay's economy, freezing millions of accounts and forcing the removal of the president amid allegations of favoritism toward the failing institution.
Paraguayan prosecutors charged former President Santiago Peña with breach of trust and requested his preventive custody following the Ueno Bank collapse. The digital lender, which expanded rapidly since 2023, was ordered into resolution by the central bank on Monday night, freezing accounts for nearly 3 million citizens. This crisis triggered Peña's impeachment and house arrest after he resigned to retain special judicial immunity, a move lawmakers rejected.
Latest updates
Prosecutors seek preventive custody for Paraguay President Santiago Pena over Ueno Bank collapse
Prosecutors in Paraguay have formally requested that President Santiago Pena be placed in preventive custody, citing his alleged involvement in the collapse of Ueno Bank. This legal action intensifies the political turmoil following Pena's impeachment, which was directly triggered by the bank failure that left millions of citizens unable to access their savings. The crisis has severely impacted the country's economy, forcing the government to address the fallout while facing charges of mismanagement. Pena faces the prospect of detention as the judicial process unfolds against the backdrop of a presidency already in crisis.
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