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The deposed president of Paraguay Santiago Peña was placed in pre-trial detention on Saturday, following his indictment in connection with the collapse this week of the Ueno Bank, which injured millions of savers, announced a Paraguayan judge.
Of the almost three million customers affected by the dissolution of the financial institution, about 1.2 million have already received the return of their savings, according to the Central Bank of Paraguay on Saturday. The process started with users who have accounts in other banks and do not have debts, but is expected to reach 97% of those affected. The government of the new President Pedro Alliana also guaranteed the payment of the assets of the 32,000 pensioners who had been injured.
The decision comes after the prosecution charged him for the alleged crimes of abuse of confidence and administration for personal benefit
Santiago Peña was ousted due to a banking crisis which left millions of people unable to access their money.
The opposition accuses Santiago Peña of conflict of interest for his links with the Ueno Bank's own group and questions possible economic benefits.
Santiago Peña, the resignation president of Paraguay, asked for an extension to Congress to respond to the allegations related to the serious financial crisis and the collapse of Ueno Bank, a banking entity related to its environment and of which it was a shareholder. Peña argued that it was notified only the day before and that the deadline does not guarantee due process. Congress assesses the order in the midst of a climate of tension. Report from our correspondent, Flavia Borja.
Paraguayan President Santiago Peña submitted his resignation on Thursday, but Congress put it on hold as impeachment proceedings against him move forward. Peña is facing impeachment over a banking scandal that has affected millions of people and sparked protests, with thousands taking to the streets in recent days.
Three years after assuming power, Santiago Peña ended up being dragged away by the crisis following the intervention of the Ueno Bank.
Paraguayan President Santiago Peña, who resigned on Thursday, has moved in three years from an image of a brilliant economist embodying the young guard of the ruling party in the country, to that of a stateman who is dismissed for his ties with a bank that has become insolvent.
Economist Santiago Peña came to the presidency of Paraguay in 2024 as one of the youngest leaders in the country's history, carrying points for his proximity to the business world, especially the bank Ueno, which is currently in insolvency and pushed Peña to resign from office.
Peña challenges the Paraguayan Congress and will defend itself in the political trial against it. Members refuse to accept the resignation
In the wake of a national banking scandal, the President of Paraguay, Santiago Peña, announced his resignation on Thursday, but remained technically at the head of the state because Parliament failed to vote to accept or refuse it. Accused of "bad performance of his duties" and "conflict of interest", he is preparing for his trial in impeachment on Friday.
Paraguay’s lower house voted unanimously to impeach President Santiago Pena on Thursday, just minutes after he announced his resignation on X. Protesters have rallied in the streets since the takeover of a bank linked to Pena blocked millions of people, including pensioners, from accessing their money.
The President of Paraguay resigned in the midst of the crisis unleashed by Ueno Bank's intervention. The Congress will begin a political trial on Thursday against Peña after having no quorum to decide whether or not to accept his resignation.
Following the pressure of a possible political trial and protests on the streets, Santiago Peña resigned the Paraguayan Presidency. Peña presented her resignation through a video published on her social networks, following the intervention and closure of Ueno Bank, which affects millions of customers and opened a front of political instability. The decision takes place after the blocks of the Chamber of Deputies announced their support for the political trial and confirmed the votes necessary to move forward with the dismissal. From Asunción, our correspondent, Flavia Borja, extended the details.
The move follows a bank collapse and after the lower house of congress voted in favour of pursuing an impeachment trial against him.
The Chamber of Deputies rejects his resignation in order to prevent him from having a party and moves forward with the political trial.
The decision comes after legislators from the opposition and its own party pushed a political trial to remove it.
Through a video published on his social media, Paraguay's President, Santiago Peña, resigned on November 5 following the opening of a debate in the Chamber of Deputies on a possible political trial for the intervention and closure of Ueno Bank, an entity linked to the president. The Central Bank's measure triggered a financial and political crisis that affected 2.9 million customers with branch closures and access to accounts.
