The Public Prosecutor’s Office attributes to the former president alleged acts of breach of trust and administration for own benefit. It has also requested pretrial detention for Carlos Carvallo, former president of the Banco Central del Paraguay, according to the information published by ABC Color. The prosecutorial request does not amount to a judicial ruling granting that measure or to a conviction.
Pedro Alliana, until now vice president, has assumed leadership of the State. His first task combines the reorganization of the Executive with the response to a crisis that keeps savers awaiting access to their money.
What the Prosecutor’s Office accuses Santiago Peña of
The investigation seeks to determine responsibilities related to the operation of Ueno Bank, its oversight, and the placement of state funds. According to information from El País provided for this reporting, the prosecutorial hypothesis examines deposits by public bodies and social security entities between 2023 and 2026, along with allegedly irregular credits to companies linked to the Grupo Vázquez.
The Public Prosecutor’s Office had announced on November 5 the opening of three criminal cases. Among its background are complaints by legislators, a filing by the Ministry of Economic Affairs, and the expansion of a complaint against Peña made in October 2025.
Therefore, the scope of those investigations goes beyond the accounts of a bank. It includes the actions of authorities and former authorities of the bodies that were supposed to oversee it, and of institutions that placed resources in the entity.
ABC Color reports that Peña and Carvallo refrained from declaring during their respective appearances. The former head of the Banco Central is also attributed the alleged production of public documents containing false content.
From removal to the request for pretrial detention
The prosecutorial order for the arrest of both was issued on Friday, November 6, within criminal case number 92/2026. The initial provision established that Peña remain detained at his home until he was made available to the Public Prosecutor’s Office.
For Carvallo, continued placement in a dependency that had to be determined by the Policía Nacional was ordered. The Prosecutor’s Office communicated that the proceedings had to be carried out within legal deadlines and respecting the rights of the detainees.
El País reports that the protests in front of Peña’s residence led to incidents and that the former president was transferred to the headquarters of the Presidential Escort Regiment. This Saturday, he appeared before the Prosecutor’s Office.
The sequence contains decisions of a different nature: the departure from the Presidency occurred through impeachment proceedings; the criminal investigation must establish whether there were crimes and who would be responsible for them.
Why Ueno Bank collapsed
The Central Bank places the origin of the intervention in a deterioration of solvency. According to its official statement, the adjustments made to the financial statements left Ueno’s solvency ratio below half of the minimum required.
The board agreed on November 2 to begin the resolution procedure, announced publicly the following day. This mechanism includes the verification of the balance-sheet situation and actions to preserve the assets.
The monetary authority argues that it is a specific problem of Ueno, not a widespread situation in Paraguay’s financial system. That is the supervisor’s assessment, which has also announced the investigation into the responsibilities that correspond within its powers.
The entity had close to three million clients, according to information from El País. Among those affected are private individuals and public agencies, which has extended the consequences of the closure beyond family savings.
What money clients of Ueno can recover
The official information differentiates three concepts: the first group of payments, the advance on the guarantee, and the coverage limit. Confusing them can lead an saver to believe that the initial amount is everything they will be able to receive.
The November 5 statement includes in the first stage depositors with total balances of up to ten million guaraníes, with no debts to Ueno and with an account enabled in another bank or financial institution in the country. For those who meet those conditions, the Central Bank announces the refund of the entirety of their deposits.
| Measure | Amount announced | Main conditions |
|---|---|---|
| First group of payments | Totality of the deposits when they do not exceed 10 million guaraníes. | No debts with Ueno and with an enabled account in another bank or financial institution in the country. |
| Advance of the guarantee | Up to 40 minimum wages. | The announcement includes deducting overdue debts with the entity. |
| Coverage limit | 75 minimum wages: 228,300,000 guaraníes. | Per depositor and entity, not for each account. It is not an additional payment to the advance. |
Source: Central Bank of Paraguay. These are different concepts; not three amounts that must be added. The calendar and instructions for each group must be consulted in official channels.
The announced advance is up to 40 minimum wages. The coverage published by the Central Bank reaches 75 minimum wages, equivalent to 228,300,000 guaraníes, per depositor and entity. The difference between these two amounts must not be interpreted as a promise of immediate repayment of the entire balance.
Alliana changes the Government under pressure from those affected
The new president has appointed Ariel Martínez as Minister of the Interior. According to Última Hora, the appointment appears in his first presidential decree and comes after the resignation of Enrique Riera and an interim period in charge of the portfolio.
Martínez had already held the Interior post during the Presidency of Horacio Cartes, in 2018. Alliana has tasked him with restoring security and peace of mind, while protests continue over the Ueno case.
El País also reports the arrival of Juan Carlos Baruja at Public Works and presents the appointments as a reinforcement of figures close to Cartes. The presidential turnover thus keeps the Partido Colorado at the head of the Executive.
Peña’s departure has not closed the response in the street. According to that newspaper, protesters and opposition sectors question Alliana’s previous actions, demand his removal, and call for early elections.
The promise to return savings and the official procedure
Alliana has assured that those affected will recover their funds, according to El País. That political statement must be distinguished from the conditions, limits, and stages that the Central Bank publishes.
For clients, the operational reference is the [official payment portal of the Deposit Guarantee Fund. There they must check the instructions applicable to their situation, especially if their deposits exceed the coverage or maintain debts with the entity.
The Central Bank recommends keeping the documents for accounts and deposits. It also warns that passwords, verification codes, or money must not be handed over to third parties who promise to speed up the recovery of the funds.