Wednesday, November 11, 2026 The Patriot Focus

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Paraguay's Ousted President Santiago Peña Faces Prosecutors After Bank Collapse

Santiago Peña, impeached and under house arrest after the collapse of Ueno Bank, appeared before prosecutors Saturday as his successor promised to compensate millions of depositors left in the lurch.

Paraguay's Ousted President Santiago Peña Faces Prosecutors After Bank Collapse
ASUNCIÓN, Paraguay — Ousted Paraguayan President Santiago Peña appeared before prosecutors Saturday morning, a day after lawmakers unanimously convicted him of malfeasance in office and a judge placed him under house arrest over the collapse of a major digital bank in which he was a shareholder. The Senate refused to accept Peña's resignation Thursday and instead pressed ahead with an impeachment trial, finding him guilty Friday of jeopardizing state assets and improperly benefiting from his ties to Ueno Bank. Prosecutors subsequently accused him of breach of trust and other charges. Ueno Bank, a digital lender that served roughly 3 million customers — more than half the country's adult population — was seized by the central bank Tuesday after its solvency ratio fell below legal standards. The collapse has left millions of Paraguayans unable to access their money, triggering protests across the capital. Peña, long regarded as one of Washington's closest allies in the region and a pro-market leader who championed making Paraguay easier to do business in, has denied any wrongdoing. In a social media post, he offered a partial apology. "I want to apologize to the Paraguayan people if I have failed you," Peña said. Vice President Pedro Alliana was sworn in as president Friday and will serve out the remainder of Peña's term through August 2028. In a speech, Alliana said he would take action to compensate depositors who lost money in the bank's failure. Ueno Bank had touted that more than a million Paraguayans opened bank accounts for the first time through its services, which included generous cash-back offers on groceries. The impeachment marks the first removal of a Paraguayan president since Fernando Lugo in 2012. Demonstrators gathered in Asunción's main square in the days before the vote, burning an image of Peña as anger over the banking crisis mounted. The case now moves through the courts, with Peña confined to his home as prosecutors build their case against him.

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