Paraguay’s ex-president Pena faces new charge over Ueno bank collapse | Banks News
Former Paraguayan President Charged with Criminal Association Following Bank Collapse
Published on November 13, 2026
Paraguayan prosecutors have charged former President Santiago Peña with criminal association linked to the recent collapse of the digital bank Ueno. This development follows Peña’s removal from office by Congress just one week prior.
The prosecutor’s office announced the charges on Friday, adding to existing accusations of breach of trust and self-dealing. Peña is currently being held in pretrial detention at a military facility.
The 47-year-old former leader is alleged to have used his position to direct significant government funds to Ueno while concealing or minimizing the bank’s financial difficulties, despite warnings regarding its risky lending practices. Peña had financial ties to the institution, holding a stake in the bank’s holding company until last year.
Peña has denied all allegations against him.
On Thursday, investigators conducted a search of his official residence in Asunción, where agents from the economic crimes unit gathered data and relevant materials for the ongoing investigation.
Last week, Peña attempted to resign from the presidency, but Congress rejected his resignation and proceeded with impeachment. He was arrested shortly after his ousting.
The collapse of Ueno has left numerous customers unable to access their accounts, leading to widespread protests as thousands demanded accountability and the return of their funds. Prosecutors are currently investigating missing assets and announced on Friday that some had been located abroad, although specific countries were not disclosed. Previous requests for assistance in locating these funds have been made to the United States, Luxembourg, and Argentina.
“The necessary steps are underway to request that they be frozen,” said prosecutor Francisco Cabrera during a press briefing.
In addition to Peña, three former central bank officials were arrested on Friday for allegedly being aware of Ueno’s financial issues since late last year.
Ueno, which managed more than $800 million in public funds, rapidly expanded during Peña’s presidency from a financial technology startup into a major player handling state pensions and government accounts.
The credit ratings agency Fitch has placed Paraguay’s sovereign rating under review for a possible downgrade, which could increase borrowing costs for the government.
On Thursday, the Central Bank of Paraguay announced it had returned savings to over 1.8 million individuals who had deposited funds in Ueno.
