Paraguay Arrests Santiago Pena After Ueno Bank Collapse
Paraguayan authorities arrested former president Santiago Pena following the collapse of Ueno Bank, which triggered a national financial crisis and widespread job losses.
The collapse of Ueno Bank has triggered a severe financial and political crisis in Paraguay, resulting in the impeachment and arrest of former president Santiago Pena. Authorities accuse Pena of using his office to steer government funds into the digital bank and concealing its solvency problems, charges which he denies.
The Central Bank of Paraguay seized the institution and has issued partial refunds to approximately 1.8 million eligible depositors. However, the majority of 800 million dollars in public funds remains unrecovered.
The crisis has displaced approximately 7,000 employees across Paraguay and international markets, including Panama, Nicaragua, Argentina, and Mexico. Many of these workers were employed by Itti, a technology company owned by Grupo Vazquez that provided IT support to the bank.
In response to the labor crisis, Minister of Labor Monica Recalde eliminated contractual exclusivity clauses to allow displaced workers to find new employment. The ministry is also coordinating with the Social Security Institute to ensure affected employees maintain access to medical care.
