Paraguayan prosecutors formally charged ousted President Santiago Peña over the collapse of digital lender Ueno Bank after taking his testimony on Saturday, while the Central Bank of Paraguay reported it has returned funds to 1.2 million of the lender’s 3 million customers. Authorities also outlined a payment plan for 32,000 retirees affected by the freeze, as newly sworn in President Pedro Alliana pledged full compensation for depositors.
The charges follow Friday’s Senate vote to impeach Peña rather than accept his resignation, stripping him of the lifetime Senate seat and prosecutorial immunity granted to former presidents. Authorities detained Peña on Friday night on suspicion of breach of trust, influence peddling and misappropriation of funds before moving him from house arrest to a military base as protesters gathered outside his home. Peña, who denies wrongdoing, held a stake in Ueno’s parent group, Grupo Vázquez, until March 2025, and prosecutors are examining the placement of $850 million in public funds at the lender, including $380 million from the state pension and health system.