Paraguay’s ex-president Peña put under house arrest amid banking scandal
Former Paraguayan President Santiago Peña was placed under house arrest on November 6, shortly after lawmakers removed him from office over a banking crisis, Qazinform News Agency correspondent reports.
According to Paraguay’s Attorney General’s Office, prosecutors ordered Peña’s detention as part of an investigation into alleged breach of trust and other offenses linked to Ueno Bank.
Under the November 6 detention order, Peña must remain at his residence until he is brought before the Specialized Unit for Economic Crimes and Anti-Corruption.
Prosecutors also ordered the detention of former Central Bank chief Carlos Carvallo, who is to be held at a facility designated by the National Police.
On November 6, the Paraguayan Senate voted unanimously among senators present to remove Peña for misconduct in office.
His lawyers challenged the impeachment proceedings, arguing that the accusations lacked a sufficient legal basis. They also maintained that his resignation on November 5 made the proceedings unnecessary.
The previous day, the Chamber of Deputies had approved impeachment proceedings against Peña with 78 votes in favor. Lawmakers accused him of conflicts of interest and alleged irregularities involving public pension funds linked to Ueno Bank.
The crisis began after the Central Bank of Paraguay launched a resolution process for Ueno Bank on November 2.
The regulator said the bank’s solvency ratio had fallen below 50% of the required minimum. It described the intervention as necessary to protect depositors and maintain financial stability.
Following Peña’s removal, Vice President Pedro Alliana was sworn in as Paraguay’s new president to complete the 2023–2028 presidential term.
In his inaugural address, Alliana pledged immediate measures to compensate people affected by the banking crisis and promised greater transparency.
Meanwhile, the Central Bank announced the first phase of deposit guarantee payments for eligible customers holding up to 10 million Paraguayan guaraníes. The initial group includes depositors with no outstanding debts to Ueno Bank and an active account at another financial institution.
Earlier, Qazinform News Agency reported that Peña announced his resignation on November 5 as the collapse of Ueno Bank left around 3 million customers unable to access their accounts.
