Millions lose access to money as ousted Paraguayan president Santiago Peña appears before prosecutors

Bank failure sparks political crisis

Ueno Bank, a digital lender serving about 3 million customers, collapsed and left millions across Paraguay without access to their funds. The bank had helped more than a million people open accounts for the first time, and offered cash back on groceries.

Paraguay’s central bank took control of Ueno on Tuesday, saying its solvency ratio no longer met legal standards. Demonstrations followed in Asunción, the capital.

Senate advances impeachment

Peña, a shareholder in Ueno Bank, was impeached Friday and placed under house arrest. Legislators said his ties to the lender put state assets at risk and benefited him personally.

Peña announced his resignation Thursday, but lawmakers declined to accept it and continued the impeachment process. The Senate’s website said legislators voted unanimously to find him guilty of malfeasance in office.

Peña faces prosecutors

Prosecutors accused Peña of breach of trust, among other charges, and he appeared before them Saturday morning. He has denied wrongdoing. In a speech shared on social media, Peña apologized to the public if he had let them down. The last Paraguayan president removed from office was Fernando Lugo in 2012.

Alliana takes over

Peña had been viewed as a pro-market leader and one of Washington’s closest allies in the region. The crisis has brought political upheaval alongside widespread disruption to customers’ access to their money.