Paraguay's former president charged after bank collapse

ByVictoria Bourne and Will Grant, Mexico, Central America and Cuba correspondent.

Key points

• Long lines of individuals trying to withdraw capital from Ueno branches snaked down the streets of the capital Asuncion on Tuesday and Wednesday.
• Peña's impeachment passed with 44 out of 45 senators voting in favour of it.
• Prosecutors in Paraguay have charged former president Santiago Peña over his alleged role in a banking scandal that led to his impeachment.
• Afterwards, senate president Basilio Núñez remarked Peña was identified guilty of "dereliction of duty".

ByVictoria Bourne and Will Grant, Mexico, Central America and Cuba correspondent. 7 November 2026, 01: 07 GMT. Updated 1 hour ago.

He has been accused of breach of trust and administration for personal gain.

Peña, who denies any wrongdoing, was forced from office after a bank collapse triggered a crisis that left more than half of the country's population without access to their accounts.

He was arrested on Friday minutes after lawmakers, including from his own party, unanimously voted to remove him from office after the collapse of Ueno Bank. It has links to his private business interests.

He had offered to step down but rather than accept his resignation, senators impeached Peña and charged him with misconduct, meaning he has been stripped of the immunity usually granted to ex-presidents.

Peña, who until last year held shares in the firm that owned the bank, has denied any wrongdoing.

Notably, the impeachment charges that led to Peña's removal alleged he had conflicts of interest, manipulated regulatory oversight, diverted pension funds, and participated in an institutional cover-up involving the central bank.

Peña's deputy, Pedro Alliana, has been sworn in as the new interim president and promised not to "abandon" the millions of individuals affected by the scandal.

"Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated, " remarked Alliana, who will serve as president until 2028.

Meanwhile, the demise of the digital bank left more than half of Paraguay's population without access to their savings after it was seized by Paraguay's central bank.

In practice, an estimated three million depositors remain unable to access their savings and pensions, prompting public outrage particularly in the capital, Asunción.

Protests erupted nationwide in response, with thousands taking to the streets on Thursday to demand their funds.

Earlier demonstrations featured clashes with the police. This person applied tear gas and water cannons on the crowd.

Peña's impeachment passed with 44 out of 45 senators voting in favour of it. One lawmaker was absent.

"It was never my intention to betray the trust you placed in me, " Peña remarked in a video posted on X announcing his resignation, adding his priority was "the peace of mind of Paraguayans who entrusted their savings to our financial system".

Senator Rafael Filizzola remarked: "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."

Analysts say Peña is projected to now be prosecuted over the bank's collapse.

His defence lawyer Ricardo Preda described the allegations as a "reckless accusation" that was "irresponsible and opportunistic".

For now, paraguay' s former president charged after bank collapse remains the part of the story worth watching, and further updates are likely as more details are confirmed.