Paraguay’s President appears before prosecutors after bank collapse leaves half of population locked out of accounts

Paraguay's newly sworn-in President Pedro Alliana, a 52-year-old conservative politician, receives the presidential sash following Santiago Pena's removal from office in an impeachment trial that found him guilty of poor performance over his links to the collapse of digital lender Ueno, despite Pena having resigned a day earlier, in Asuncion, Paraguay, November 6, 2026. REUTERS/Cesar Olmedo

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 in the South American nation after being placed under house arrest on Friday. One opponent described the case as the ‘biggest corruption scandal in our democratic history’.

Paraguay’s 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.

Security personnel stand guard as people protest outside the home of former President Santiago Pena following his removal from office in an impeachment trial that found him guilty of poor performance over his links to the collapse of digital lender Ueno, in Asuncion, Paraguay, November 6, 2026. REUTERS/Cesar Olmedo

The crash sparked a run on Ueno, with long queues of desperate savers forming outside branches in 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.

Lawmakers who backed Mr Pena’s impeachment accused him of conflicts of interest, manipulating regulators and participating in an cover-up involving the central bank.

A demonstrator gestures during a protest against the banking crisis and the impeached Paraguay's President Santiago Pena outside the National Congress in Asuncion on November 6, 2026. Paraguayan senators appointed Vice President Pedro Alliana to lead the country on November 6, 2026, after voting to impeach his predecessor Santiago Pena over a massive banking crisis. (Photo by DANIEL DUARTE / AFP via Getty Images)

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’.

Reports claim as many as three million customers remain unable to access their savings and pensions.

(FILES) Paraguay's President Santiago Pena (L) is pictured before the group photo after the first session of the G20 Leaders' Meeting in Rio de Janeiro, Brazil, on November 18, 2024. Paraguay's Senate impeached President Santiago Pena on November 6, 2026, over a banking crisis that left millions of people unable to access their deposits. Senators voted overwhelmingly to remove Pena from office over the implosion of Ueno bank, one of the country's biggest, with which he had ties. (Photo by Mauro PIMENTEL / AFP via Getty Images)

Mr Pena’s rapid impeachment has seen vice president Pedro Alliana take power in the South American nation, 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.’

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Original source Paraguay’s President appears before prosecutors after bank collapse leaves half of population locked out of accounts

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