Paraguay prosecutors raid presidential residence in Peña probe
Prosecutors are seeking records tied to the collapse of Ueno Bank and allegations that former President Santiago Peña used his office to benefit the lender.
- On Tuesday, the Central Bank of Paraguay seized Ueno Bank, freezing customer savings and launching liquidation proceedings for the institution that held deposits from 60% of the adult population.
- A leaked BCP investigation, the Rivarola Report, revealed the bank granted massive loans to affiliated companies without adequate collateral; President Santiago Peña's administration provided political support that undermined solvency requirements.
- Almost 95% of savers received compensation from the Deposit Guarantee Fund, with payments totaling 330 million dollars, though coverage is limited to about $38,000 per depositor.
- The state had deposited as much as $850 million in public funds into Ueno, triggering a political crisis that led to Peña's removal from office; Vice President Pedro Alliana assumed the presidency last Friday.
- Labor Minister Mónica Recalde stated that up to 7,000 people lost jobs in companies linked to the bank across Paraguay, Mexico, Nicaragua, Argentina and Panama; the Paraguayan Banking Association insists the financial system remains sound.
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86 Articles
Prosecutors ordered the search of the property for the first time in the history of the country; they had already searched the house and a summer house of the ex-mandatario in search of evidence
The procedure follows several searches of property linked to the former 47-year-old mandatario, who is in pretrial detention and accused of using his influence to favor Ueno Bank
Prosecutor Cristian Benítez told ABC that there are "elements of suspicion regarding the conduct" of the official, who was responsible for supervising the country's financial institutions.
Researchers conducted searches at the official residence of the former President of Paraguay, Santiago Peña, on Thursday (12), as part of an investigation into the breakdown of Ueno Bank, one of the largest banks in the country. The information is from the Public Prosecutor's Office of Paraguay. The former President was arrested on Friday (6) after being removed from office. On Tuesday (10), authorities entered the former President's field resid…
The procedure followed several raids on properties linked to the 47-year-old ex-mandatario, who is in pretrial detention and faces up to 15 years in prison. The Central Bank of Paraguay (BCP) intervened Ueno Bank on 3 November for serious solvency problems, leaving hundreds of thousands of clients without access to their deposits. Massive demonstrations broke out. Peña is accused of using his influence to favor the bank, in whose controlling gro…
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