Paraguayan prosecutors have charged former President Santiago Peña over the collapse of digital lender Ueno Bank, after the Senate impeached him and prosecutors sought a judge's order for pretrial detention^1,14.

Peña is accused of breach of trust and self-serving administration; he denies wrongdoing^1,14. Former Central Bank president Carlos Carvallo, who had run Ueno before Peña appointed him, was also charged, MercoPress reported^14,3.

The Senate on Friday removed Peña for poor performance of his duties, with all 44 senators present voting in favor and one member absent, including lawmakers from his Colorado Party^3,7,9. He had offered to resign on Thursday; senators proceeded with impeachment instead, which stripped the lifetime Senate seat and immunity a resignation would have conferred^1,3,10.

Vice President Pedro Alliana was sworn in and is to serve through August 2028^3,7. He said affected savers would be fully compensated^1,9. An opposition bid to impeach Alliana as well did not win approval, RTE reported⁹.

Paraguay's central bank seized Ueno earlier in the week after finding its solvency ratio below half the required minimum, freezing accounts for nearly three million customers — about 60% of adults, according to DW^7,3. The bank held hundreds of millions of dollars in public and pension money, including about $355 million from the IPS social-security institute as cited by a fund manager in DW's report^7,10.

Peña had held shares in Ueno's holding company until April 2025 and had appointed Carvallo to the central bank in 2023^7,3. Impeachment articles alleged conflicts of interest, diverted pension funds and a cover-up; Peña's lawyer Ricardo Preda called the claims a "reckless accusation" that was "irresponsible and opportunistic," the BBC reported^1,7.

Prosecutors also charged dozens of bank officials; Ueno founder Miguel Vázquez has been held, according to DW⁷. After protesters gathered near Peña's Asunción home, he was moved to the Presidential Escort Regiment barracks, MercoPress said¹⁴. Small depositors have begun receiving payouts of up to about $1,500–$1,600^14,9.

A judge still must rule on pretrial detention¹⁴. Alliana has promised to focus on restoring savings; protesters and some opposition figures still want faster payouts and, in some cases, early elections^14,9.