Ousted Paraguayan president appears before prosecutors

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1. 1h ago

   Ousted Paraguayan president appears before prosecutors over bank collapse

   Former President Santiago Peña appeared before prosecutors Thursday as part of the investigation into the collapse of digital bank Ueno, which left millions of depositors without savings. The Senate impeached and removed Peña on Friday, November 7, and placed him under house arrest. Vice President Pedro Alliana was sworn in as president the same day. The crisis erupted after Ueno, a state-affiliated digital bank, failed amid allegations of fraud and mismanagement.

   Why it matters

   The Ueno collapse has triggered Paraguay's most severe political crisis in years, toppling a president allied with former U.S. President Donald Trump and exposing deep ties between political power and the financial sector. The bank's failure wiped out savings for hundreds of thousands of Paraguayans in a country previously hailed as a regional economic success story. Peña's removal marks a dramatic reversal for the Colorado Party, which has dominated Paraguayan politics for decades.

   What is confirmed

   • Santiago Peña was impeached by the Senate and removed from office on Friday, November 7, 2026.
   • Peña was placed under house arrest following his removal.
   • Pedro Alliana was sworn in as Paraguay's new president on November 7, 2026.
   • The impeachment followed the collapse of Ueno, a state-affiliated digital bank.
   • Peña appeared before prosecutors on Thursday, November 12, 2026, as part of the investigation into the bank's failure.

   Still unconfirmed

   • The Ueno collapse involves allegations of fraud and mismanagement linked to Peña's administration.
   • Peña is a political ally of former U.S. President Donald Trump.
   • Former President Horacio Cartes is maneuvering to regain influence through the crisis.

   What to watch next

   • Prosecutors' decision on whether to formally charge Peña with crimes related to the Ueno collapse
   • Alliana's first policy moves and cabinet appointments as president
   • Public reaction and potential protests over lost savings and political instability
   Sources used for this update (20)

   1. The New York Times — Paraguay’s Leader Resigns After Bank Failure Leaves Millions Without Savings
   2. Bloomberg.com — How a Banking Scandal Is Taking Down Trump’s Ally in Paraguay
   3. Al Jazeera — How Paraguay’s Ueno collapse is only its latest banking crisis
   4. Al Jazeera — Paraguay’s Santiago Pena under arrest, new president Pedro Alliana sworn in
   5. BBC — Paraguay's President Santiago Peña impeached and arrested
   6. CNN — Paraguay president impeached and under house arrest following bank collapse scandal
   7. dw.com — Paraguay: President Santiago Pena impeached, under house arrest over bank crisis
   8. The Guardian — ‘Very strange, very sad’: Paraguay bank collapse fells a presidency and leaves millions broke
   9. Financial Times — A bank collapse exposes the dark side of Latin America’s star economy
   10. Bloomberg.com — Bank Crisis Drives an Ex-President to Wrest Power Back From His Protege
   11. NPR — Ousted Paraguayan president appears before prosecutors
   12. Reuters — Who is Paraguay's new president Pedro Alliana?
   confidence 92%