Paraguay charges ousted president Pena over Ueno Bank collapse
Former central bank chief Carlos Carvallo faces similar charges, and prosecutors have asked for pretrial detention for both men.
Paraguayan prosecutors formally charged ousted President Santiago Pena on Saturday with breach of trust over irregularities linked to the collapse of Ueno Bank, China's state news agency Xinhua reported.
Prosecutors also asked for pretrial detention for Pena and restrictions on his assets, the local newspaper Ultima Hora reported.
The indictment alleges that Pena used his position to steer substantial public and pension funds into Ueno Bank, despite his earlier financial ties to the lender.
Pena, who held shares in the bank's holding company until 2025, has denied any wrongdoing.
Former central bank chief Carlos Carvallo was charged with breach of trust, administration for personal gain and producing false public documents, and prosecutors asked for his pretrial detention as well.
Paraguay's central bank announced on Tuesday that it had started resolution proceedings for Ueno Bank after its solvency ratio fell to less than half the required minimum.
After the intervention, the bank's applications and cards stopped working, and local media reported that it had nearly 3 million customers as of June.
Prosecutors said the bank held large deposits from public institutions and pension funds.
The banking crisis sparked protests across the country.
On Friday, the Senate voted to remove Pena from office through impeachment proceedings, and former Vice President Pedro Alliana was sworn in as president that day.
