Phoenix 24
The banking crisis now reaches beyond national borders.
ASUNCIÓN
Paraguayan prosecutors have launched an international effort to identify possible overseas assets connected to former President Santiago Peña and other individuals under investigation over the collapse of Ueno Bank. The inquiry extends to Argentina, the United States and Luxembourg, adding a cross-border financial dimension to a crisis that has already forced a presidential transition and threatened the retirement savings of thousands of public-sector workers.
Manuel Doldán, head of the Public Prosecutor’s Office unit responsible for international cooperation, confirmed that authorities have contacted counterparts in the three countries. Investigators are seeking information about assets potentially belonging to individuals and companies linked to the case, with the intention of securing evidence and, where legally justified, preserving property for possible confiscation.
The investigation follows Peña’s removal from office through impeachment proceedings and his subsequent placement in preventive detention. Prosecutors have charged the former president with alleged breach of trust as an instigator and administration for personal gain. The accusations remain subject to judicial determination and do not constitute a criminal conviction.
According to the prosecution, Ueno Bank granted Peña two simultaneous loans totaling approximately $577,000 in May 2024 to finance construction of a residence in San Bernardino. Investigators allege that the monthly repayments, estimated at nearly $38,900, were approximately six times his presidential salary.
Authorities searched the property as part of their investigation. Peña’s legal representatives previously challenged the accusations during impeachment proceedings, arguing that they failed to identify a specific unlawful presidential decision.
The banking crisis began escalating when Paraguay’s Central Bank initiated a resolution procedure for Ueno Bank after identifying serious deficiencies in its financial position. The regulator reported that the institution’s solvency ratio had fallen below half the required minimum, raising concerns about its capacity to meet financial obligations.
The intervention has affected approximately 2.9 million customers and placed substantial public resources under uncertainty. Government institutions reportedly held close to $800 million in the bank, including pension funds whose security has become a major political concern.
Public schoolteachers responded with nationwide demonstrations, demanding the recovery of more than $60 million associated with the public retirement system and approximately $355 million deposited by the Social Security Institute.
The protests have placed immediate pressure on President Pedro Alliana, who succeeded Peña following the impeachment. Union representatives said Alliana committed to pursuing the recovery of the affected retirement funds, although no comprehensive reimbursement agreement has been finalized.
The financial investigation now presents two parallel challenges. Prosecutors must establish whether criminal conduct contributed to the bank’s deterioration, while financial authorities must determine how to protect depositors and preserve the integrity of the banking system.
International cooperation may help identify relevant transactions and assets, but requests for information do not establish that illicit funds have been transferred abroad. Any seizure or confiscation would require the applicable legal procedures and supporting evidence.
For Paraguay, the consequences extend beyond the fate of a former president. The crisis is testing public confidence in financial supervision, political accountability and the security of savings entrusted to institutions operating under state oversight.
Beyond the Headlines, Accountability Matters.