ASUNCION, Nov. 7 (Xinhua) -- Paraguayan prosecutors on Saturday formally charged ousted President Santiago Pena with breach of trust and administration for personal gain over alleged irregularities linked to the collapse of Ueno Bank.
Prosecutors also requested pretrial detention for Pena and restrictions on his assets, according to local newspaper Ultima Hora.
Former central bank chief Carlos Carvallo was charged with breach of trust, administration for personal gain and the production of false public documents. Prosecutors likewise requested his pretrial detention.
According to the indictment, Pena allegedly used his position to influence the placement and retention of substantial public and pension funds at Ueno Bank, despite his previous financial ties to the lender.
Paraguay's central bank announced Tuesday that it had initiated resolution proceedings for Ueno Bank after finding that its solvency ratio had fallen to less than half the required minimum.
The bank's applications and cards stopped working following the intervention. It had nearly 3 million customers as of June, local media said.
According to prosecutors, the bank held substantial deposits from public institutions and pension funds. Pena, who held shares in the bank's holding company until 2025, has denied any wrongdoing.
The banking crisis sparked protests across the country. On Friday, the Senate voted to remove Pena from office through impeachment proceedings. Former Vice President Pedro Alliana was sworn in as president later that day. ■
