The ousted President of Paraguay was arrested after freezing the deposits of half of the country's population
The Senate dismisses Peña and freezes his assets and those of the former central bank governor against the backdrop of the collapse of Ueno Bank
Quick Look
The Paraguayan Public Prosecution filed charges of breach of trust and management to achieve personal interests against the ousted President Santiago Peña and former Central Bank Governor Carlos Carvalho, and ordered their arrest and the freezing of their assets, after Peña was dismissed from the Senate against the backdrop of the collapse of Ueno Bank and the freezing of the deposits of about three million people.
AI-generated summary
Why It Matters
The Ueno digital bank in Paraguay collapsed, placing it under the guardianship of the central bank and freezing the deposits of about three million people, equivalent to almost half of the country's population. President Santiago Peña was removed from office by the Senate, and his vice president, Pedro Aliana, was sworn in as president until August 2028.
Yesterday (Saturday), the Public Prosecution in Paraguay indicted ousted President Santiago Peña, who was placed in pretrial detention against the backdrop of his alleged responsibility in a banking scandal.
Public Prosecutor Nancy Salomon announced, during a press conference, that charges had been brought against the former president related to “breach of trust and management to achieve personal interests.”
The Public Prosecution also requested the arrest and freezing of the assets of Peña and the former Governor of the Central Bank, Carlos Carvalho, who was charged with the same charges.
The 47-year-old conservative president, who is a close ally of Washington and whose term was supposed to end in 2028, was removed from office the day before yesterday (Friday). The Senate unanimously approved his conviction in connection with the collapse of the Oeno Bank, according to Agence France-Presse.
After a hearing with Peña, Judge Hernan Otazo told reporters that he had ordered the former president to be placed in pretrial detention in the same facility in Asuncion to which he was transferred following his removal from office on Friday.
The banking crisis, which quickly turned into a political crisis, erupted on Tuesday, when the central bank placed the Ueno digital bank, which has witnessed prosperity in recent years, under guardianship due to its financial crisis.
The central bank's intervention led to the freezing of the deposits of nearly three million people, the bank's declared number of customers, equivalent to almost half of Paraguay's population. The impact also affected companies, institutions and pension funds.
Peña, who has ties to the group controlling the bank, had offered to resign, but lawmakers proceeded with his impeachment with the aim of stripping him of the political immunity he would have enjoyed had he stepped down voluntarily.
He was succeeded in the position by his deputy, Pedro Aliana, pledging not to give up the rights of depositors, thousands of whom went out to protest in the streets, demanding the return of their money.
The Colombian army announced that three soldiers were killed and at least 16 others were injured, following a drone attack targeting a military base in northern Colombia.
The authorities did not reveal who carried out the attack in the small town of Santa Rosa del Sur, located at the foothills of the San Lucas Mountains. The area surrounding the town is rich in gold mines, and has long witnessed a struggle for influence between the Clan del Golfo, the National Liberation Army, and smaller groups led by former members of the Revolutionary Armed Forces of Colombia (FARC).
Video clips circulated on social media showed plumes of smoke rising from the military base following three explosions, while soldiers took shelter inside shelters fortified with sandbags.
“Those responsible for this attack... will have nowhere to hide,” President Abelardo de la Espriria said in a post on the X platform on Saturday. Every attack targeting our soldiers increases our resolve to defend Colombia.”
Violence has escalated in a number of rural areas in Colombia since de la Esparilla assumed the presidency last August.
The conservative leader canceled peace talks with the country's remaining rebel groups and took a more confrontational approach that includes launching more air strikes, militarizing some cities, and creating joint task forces to defend strategic assets, including a pipeline running from the Caribbean coast to central Colombia.
Some drug cartels and rebel groups responded by intensifying their attacks on the Colombian armed forces. Last week, a military base in Tolima province was targeted with rockets made from gas canisters, in an attack that killed four civilians. In the border city of Cucuta, police were subjected to multiple attacks using remotely detonated bombs.
On Friday, the Paraguayan Senate approved the removal of President Santiago Peña, against the backdrop of a banking crisis that deprived millions of depositors of recovering their money.
Council members voted overwhelmingly in favor of removing Peña, in the wake of the crisis caused by the collapse of Ueno Bank, with which he had previous ties.
Paraguay's public prosecutor ordered the arrest of the ousted president and the former head of the central bank, while Vice President Pedro Aliana was sworn in as President of Paraguay after Peña was removed from office.
Aliana will complete the remainder of the presidential term, which ends in August 2028.
Aliana (52 years old) is a veteran figure in the conservative Colorado Party, which has dominated the political scene in the country for a long time. He previously served as Governor of Nyembuku South Province, and previously served as Speaker of the House of Representatives.
What to Watch
AI outlook — possibilities, not facts
Trial proceedings will continue against ousted President Peña and former Central Bank Governor Carvalho
Very likely · Within weeks
Violence and attacks on the Colombian Armed Forces will continue in rural areas
Likely · Within weeks
Open Questions
- What specific evidence does the Public Prosecution rely on to bring charges of breach of trust and self-interest against Peña and Carvalho?
- What is the fate of the deposits of three million depositors and when can their money be recovered?
- Who is responsible for the drone attack on the military base in Colombia?
- What measures will Pedro Aliana's government take to restore banking and political stability?







