Paraguay's president removed over digital bank collapse

Summarised from 3 outlets · Updated 10 Nov, 11:33 · Archive

Paraguayan President Santiago Pena was removed from office after the collapse of Ueno Bank, a major digital lender, froze millions of customers' savings.

Paraguayan police raided the home of ousted President Santiago Pena as part of an investigation into the collapse of Ueno Bank, a major digital lender that triggered the country's deepest economic and political crisis in recent years. The raid followed Pena's removal from office after the bank's downfall froze access to the savings of nearly three million customers, affecting almost half of Paraguay's population of 6.5 million.

Ueno Bank began as a digital-first bank attracting many low-income customers before growing to become a major financial institution. It held state pensions and the accounts of several government institutions before the central bank froze its accounts due to solvency concerns. The resulting crisis sparked widespread protests that continued after Pena's removal.

Pena, who came to power in 2023, was arrested after Paraguay's Senate voted unanimously on Friday to remove him from office, rejecting his attempt to resign the day before. The former president faces criminal charges over allegations that he used his political influence to channel public money into the lender despite having financial ties to its parent company, an arrangement that existed until March 2025 according to The Japan Times.

On Saturday, a judge ordered Pena to remain in pretrial detention at a military facility, ruling that the measure was necessary to ensure he remained in Paraguay whilst the investigation proceeded. Pena has denied wrongdoing. His lawyer, Ricardo Preda, said he would plead not guilty and would cooperate with investigators, arguing that 'what sets a serious country apart is not that its banks don't fail, but how it responds'.

How it is being reported

• Paraguayan protesters are back on the streets despite the removal of PresidentA banking crisis that saw the president of Paraguay impeached Friday, November 6, continues to rock the country with protesters back on the streets. The Ueno Bank started as a digital first bank, attracting many low income customers, quickly growing to become a major bank in charge of state pensions and holding the accounts of several government institutions before having its accounts frozen by the central bank due to solvency concerns.France 24 · 10 Nov, 10:53
• Paraguay raids ex-president’s home: Why a bank crash brought down PenaSantiago Pena faces charges of financial crimes following Ueno Bank's collapse, impacting half of Paraguay's population.Al Jazeera · 9 Nov, 13:44
• How a digital bank’s collapse toppled Paraguay’s presidentUntil March 2025, impeached Paraguayan President Santiago Pena had been a business partner of the group that owns Ueno Bank.The Japan Times · 9 Nov, 04:21

In this story: Santiago Pena · Ueno Bank · Paraguay · Asuncion

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log