Ousted Paraguayan president appears before prosecutors
Vice President Pedro Alliana sworn in as millions lose access to funds following seizure of digital lender tied to Peña
Quick Look
- Paraguayan President Santiago Peña was impeached and placed under house arrest after the collapse of Ueno Bank, a U.S.-owned digital lender he held shares in, leaving millions without access to their money.
- Vice President Pedro Alliana was sworn in to serve out Peña's term until August 2028 and pledged to compensate depositors.
AI-generated summary
Why It Matters
Santiago Peña was a pro-market Paraguayan president and shareholder in Ueno Bank, a digital lender serving about 3 million customers—more than half of Paraguay's adult population. The bank previously reported that more than a million people opened their first bank accounts through its services. The last Paraguayan president ousted from office was Fernando Lugo in 2012.
Paraguayan President Santiago Peña was impeached and placed under house arrest Friday after the collapse of a prominent U.S.-owned bank with ties to Paraguay's government. The fallout has left millions across the country without access to their money.
Peña is one of Washington's closest allies in the region and was a shareholder in Ueno Bank, a digital lender that served about 3 million customers — more than half of the country's adult population. Peña was known as a pro-market leader focused on making it easier to do business in the country, but legislators said he jeopardized state assets and benefitted himself through his connection to the bank. Ueno Bank previously said more than a million people opened bank accounts for the first time using its services, which included generous cash back offers on groceries.
A trial is proceeding against Peña, and he is appearing before prosecutors Saturday morning. The last president ousted from office was Fernando Lugo in 2012.
Peña has denied any wrongdoing.
On Thursday though, he announced his resignation. Lawmakers refused to accept that resignation, and instead moved forward with the country's impeachment process.
At the proceedings, legislators unanimously found Peña guilty of malfeasance in office, according to the Paraguayan Senate's website.
Prosecutors accused him of a breach of trust, among other charges, before placing him under house arrest.
"I want to apologize to the Paraguayan people if I have failed you," Peña said in a speech posted to social media.
Pedro Alliana, the country's vice president, was sworn in as president to serve out the rest of Peña's term until August 2028. In a speech on Friday, he announced he would take action to compensate people whose money was lost in the bank's collapse.
Paraguay's central bank said it seized control of Ueno Bank on Tuesday because its solvency ratio, an assessment of a company's long-term financial viability, no longer met legal standards.
Protests erupted across Asunción, the country's capital city, following the seizure.
NPR's John Otis and Catherine Osborn contributed reporting to this story.
What to Watch
AI outlook — possibilities, not facts
The trial against Santiago Peña will proceed with him appearing before prosecutors
Very likely · Within days
Vice President Pedro Alliana will implement compensation measures for depositors who lost money in Ueno Bank's collapse
Likely · Within weeks
Open Questions
- What specific evidence led prosecutors to charge Peña with breach of trust and malfeasance?
- How will the government compensate depositors who lost money in Ueno Bank's collapse?
- What is the full extent of Peña's shareholding and financial benefit from Ueno Bank?
- Will the trial against Peña proceed while he is under house arrest?
