Deposed president Peña questioned over bank collapse
Santiago Peña was questioned on Saturday after prosecutors accused him of breach of trust over the downfall of Ueno Bank.
Follow-up to: Paraguay ousts President Peña Saturday, 7 November 2026, 00:42
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Former Paraguayan president Santiago Peña was questioned by the public prosecutor’s office on Saturday over the collapse of Ueno Bank. This happened a day after Congress removed him from office and prosecutors issued an arrest warrant for him.
According to The Associated Press, Peña arrived at the attorney general’s office on Saturday for questioning. Prosecutors are investigating possible breach of trust and other criminal offences surrounding the downfall of Ueno Bank. An arrest warrant has also been issued for former central bank president Carlos Carvallo.
The questioning is the latest step in a crisis that has destabilised Paraguay politically and financially within days. The Senate unanimously removed Peña on Friday. Vice-president Pedro Alliana then took over the presidency for the remainder of the term.
According to AP, the central bank said that hundreds of thousands of customers had been unable to access their accounts earlier this week. The central bank reportedly said that 1.2 million customers had since been fully or partially compensated from insured deposits. AP reported that the bank has nearly three million customers, but that figure concerns the total customer base and does not necessarily represent the number of people affected by the blockage.
Parliamentarians accuse Peña of using his political influence to direct hundreds of millions of dollars in public funds to Ueno, while regulators allegedly allowed risky loans to insiders to continue. Peña denies having done anything wrong. The allegations are therefore not established facts.
The political consequences are immediately visible. According to AP, Alliana began forming a new government on Saturday, while protests took place outside Peña’s home. AP reported that the largest teachers’ union intends to strike indefinitely from Monday, fearing that public pension funds are also insufficiently protected.
For Paraguay, the issue is not only who bears political responsibility, but also trust in banks and supervision. The case also has regional significance because Ueno was previously regarded as part of the country’s financial modernisation. As long as the investigation continues, it remains unclear whether criminal conduct, regulatory failure or a combination of the two was involved.
Also show the region and a close-up
Both sides of the figures
▲ Bright spots
- According to AP, 1.2 million customers had been fully or partially compensated from insured deposits.
- The central bank is thereby attempting to limit the immediate effects of the bank collapse on savers.
▼ Concerns
- Nearly three million Ueno customers were connected with the bank, according to AP, while many accounts were temporarily inaccessible.
- The crisis could damage confidence in Paraguayan banks and supervision.
Critical note
The available source does not provide a complete picture of the scale of the financial loss or the consequences for GDP, employment and lending. The allegations against Peña are part of an investigation and are not proven economic facts.
Who notices what
- Households
- Customers may remain dependent on partial compensation until the bank’s resolution has been completed.
- Businesses
- A banking confidence crisis could complicate payments and access to credit.
- Government
- Compensating savers and investigating political responsibility may also occupy the new government.
Every point comes from the article’s sources and was included in the fact check.
One story, several perspectives
What is established
- Peña has been removed from office and is under criminal investigation.
- The banking crisis led to blocked bank deposits and political protests.
- Peña denies wrongdoing.
Left
Arguments The state must protect savers and hold political leaders to account when public funds and bank supervision fall short.
Values Equality, public oversight and protection of citizens from financial institutions.
Consequences Without firm prosecution, trust in institutions and willingness to regulate banks may decline further.
Centre
Arguments The facts must first be established by independent investigations and courts, while savers and financial stability must be protected immediately.
Values The rule of law, institutional continuity and financial stability.
Consequences A careful process can restore confidence, but prolonged uncertainty may weigh on lending and the economy.
Right
Arguments The crisis mainly shows that political interference and weak governance make banks vulnerable; responsibility must be established individually without punishing the entire business community.
Values Property, market confidence and limited but effective state power.
Consequences Tougher rules may bring stability, but could also make credit and entrepreneurship more expensive in Paraguay.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The core facts are based directly on a recent AP report. Allegations are explicitly attributed and are not presented as proven.
- confirmed Santiago Peña was questioned by the public prosecutor’s office on Saturday. — AP reports that Peña was taken to the attorney general’s office on Saturday for questioning. source
- confirmed The Senate removed Peña from office on Friday. — AP describes the unanimous vote and the succession by vice-president Pedro Alliana. source
- confirmed The central bank reported full or partial compensation for 1.2 million customers. — This figure appears in the AP report. source
Editor's note
It is certain that Peña was questioned, that Congress removed him from office and that a criminal investigation is under way. The allegations against him have not been proved; AP is the public source used.Sources
- Paraguay’s ousted president faces prosecutors after his removal over bank collapse — The Associated Press
The story so far
- Thursday, 5 November 2026, 13:11 Paraguay pays advances to Ueno Bank depositors
- Thursday, 5 November 2026, 19:10 Paraguayan president Peña resigns amid banking crisis
- Thursday, 5 November 2026, 23:44 Charges threaten Paraguay’s resigned president
- Saturday, 7 November 2026, 00:42 Paraguay ousts President Peña
- Saturday, 7 November 2026, 21:47 Deposed president Peña questioned over bank collapse (this article)
More on this in Dutch media
- de Volkskrant — „paraguay santiago peña”
- RTL Nieuws — „paraguay santiago peña”
- NOS — „paraguay santiago peña”