Paraguay’s ex-president Pena faces new charge over Ueno bank collapse
Paraguayan prosecutors have charged former president Santiago Pena with criminal association over his alleged role in the collapse of the digital bank Ueno, a week after Congress removed him from office.
The 47-year-old former leader is accused of using his position to direct millions in government funds to Ueno and concealing its financial troubles despite warnings about risky lending practices. Pena, who held a stake in the bank's holding company until last year, denies all charges.
Investigation Developments
On Thursday, investigators raided Pena's official residence in Asuncion, extracting data and gathering evidence. Prosecutors announced they had located assets abroad and were taking steps to freeze them, though they didn't specify the countries.
The necessary steps are under way to request that they be frozen.
Bank Collapse Fallout
The collapse of Ueno left customers locked out of their accounts, prompting huge protests across the country. Three former central bank officials were also arrested on Friday, accused of knowing about Ueno's issues since late last year.
The bank, which held more than $800m in public funds, grew quickly under Pena's presidency from a financial technology company into a large firm handling state pensions and government accounts. On Thursday, the Central Bank said it had returned savings to more than 1.8 million affected customers.
Economic Impact
Credit ratings agency Fitch has placed Paraguay's sovereign rating on watch for a possible downgrade, which would make it more expensive for the government to borrow money. The political and economic crisis continues to unfold as investigations proceed.
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