Roughly 60 percent of Paraguayan adults cannot access their bank accounts to buy food or other daily necessities after authorities suspended the operations of the country’s largest commercial bank, lsm.lv reported. The crisis triggered street protests, clashes with police, and an 80 percent drop in retail volumes nationwide.
Impeachment and House Arrest of Santiago Peña
The Paraguayan parliament voted to strip 47-year-old President Santiago Peña of his office. Prosecutors immediately placed him under house arrest. Investigators suspect the former leader of money laundering, illicit use of power, and self-enrichment linked to the abrupt shutdown of Ueno Bank. Peña attempted to resign Wednesday to secure a lifetime seat in parliament as a senator, but deputies rejected the move.
Lawmakers proceeded with the impeachment vote Friday. Prosecutors launched their formal investigation Thursday. Pedro Aliana, who served as vice president, assumed the office of head of state following the ouster.
Ueno Bank expansion relied on political backing
Ueno Bank expanded rapidly in recent years to become a dominant commercial lender in Paraguay. Prosecutors suspect that growth relied heavily on Peña’s political backing. Shortly after taking office, Peña appointed Carlos Carvalho Spalding—the former executive director of Ueno Bank—to head the Central Bank of Paraguay. Spalding subsequently authorized Ueno Bank to operate as a digital lender offering interest rates well above competitors.
Ueno Bank counts Peña among its shareholders. State-monitored pension funds also deposited public money into the commercial lender under Peña’s direction.
Political upheaval leaves Aliana leading the country
Peña maintained close ties to United States President Donald Trump, operating as one of his primary allies in South America. The sudden political upheaval leaves the country under the leadership of Aliana while judicial authorities continue their criminal probe into the suspended bank and the ousted administration.
Authorities suspend operations at largest commercial lender
Why can adults in Paraguay not access their bank accounts?
Authorities suspended Ueno Bank, the country’s largest commercial lender, amid a corruption investigation involving its operations and leadership. The freeze blocks 2.9 million clients from withdrawing funds for food and basic necessities.
Ousted Paraguayan President Santiago Peña is under house arrest on suspicion of breach of trust. He was detained shortly after the Senate removed him from office following a bank collapse. https://t.co/EXWR8dAi2V
Who took over as the leader of Paraguay?
Pedro Aliana assumed the role of head of state after parliament removed Santiago Peña from office and prosecutors placed the former president under house arrest.
What specific allegations do prosecutors face Santiago Peña with?
Prosecutors initiated an investigation against Peña on charges of money laundering, illegal use of power, and personal enrichment tied to his financial ties with Ueno Bank.
Earlier coverage: Santiago Peña Placed Under House Arrest After Ueno Bank Collapse
More on Ueno Bank
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