Asuncion (Paraguay) (AFP) – Paraguay announced Monday that it had launched steps with the United States, Luxembourg and Argentina to find funds embezzled in the banking scandal that caused the dismissal of President Santiago Peña.
Published on: 09/11/2026 - 9:30 p.m.
At the same time, the new president Pedro Alliana announced a reorganization of his cabinet, three days after coming to power to replace Mr. Peña, who was placed in detention.
The president announced that he had asked ministers and senior officials “to make their functions available”.
Demonstrations
The scandal left three million savers without access to their savings, in a country where 60% of the population had an account with Ueno Bank.
Hundreds of workers and teachers demonstrated again on Monday in Asunción to demand guarantees regarding public funds deposited at Ueno Bank, after demonstrations bringing together thousands of people in recent days.
The demonstrators are demanding the recovery of pension funds and threaten to maintain the paralysis until they obtain guarantees from the government.
The protest, called by education unions, led to the suspension of classes in public schools.
The prosecution indicated that "efforts are underway to locate and secure assets abroad, in order to repatriate them and compensate the victims."
“To this end, contacts are maintained with the authorities of Luxembourg and Argentina, and the Department of Justice of the United States of America has offered its cooperation,” the public prosecutor said in a press release.
On Sunday, US Secretary of State Marco Rubio called Mr. Alliana to congratulate him on taking office and reaffirm Washington's support for Paraguay, the head of state said.
Vault
Meanwhile, the Central Bank of Paraguay (BCP), which intervened with Ueno Bank on November 3 due to solvency problems, included new groups of savers in the deposit return program on Monday.
Since Thursday, nearly 1.2 million people have recovered a total of $168 million, according to BCP data.
Advances of up to $20,000 began being paid on Monday. But the guarantee fund does not cover reimbursements exceeding $36,000 per account, which creates uncertainty over the fate of public funds that were deposited with Ueno, such as those of the Social Insurance Institute (IPS), which manages pensions.
In these cases, recovery of misappropriated assets can be crucial to returning deposits.
On Monday, the Senate unanimously approved the nomination of Jorge Schreiner as new president of the BCP.
President Alliana assured that he seeks to "strengthen government coordination and guarantee more efficient management", affirming that the institutions will continue to function normally.
The president also announced tax relief for those affected by Ueno's fall.
The prosecution continues its investigation into ex-president Peña, placed in pre-trial detention and accused of alleged crimes linked to his financial relations with Ueno Bank.
Investigators are trying to open a safe discovered Sunday during a search of his summer home in San Bernardino, some 50 km from Asunción.
“We were unable to complete the work we were doing precisely because we found a safe” of “great complexity,” prosecutor Silvia González said at a press conference on Monday, who indicated that they will return to the site with the “appropriate device” to open it.
Investigators plan to seek the collaboration of Mr. Peña's wife, Leticia Ocampos, or other family members to unlock it, prosecutor Christian Benítez told ABC media.
They are also considering a controlled explosion. The construction of the villa was financed in part with loans from Ueno Bank, whose monthly payments, according to the investigation, were equivalent to six times President Peña's salary.
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© 2026 AFP
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