Paraguay’s pro-Israel ex-president taken into custody over alleged bank crisis role

ASUNCION, Paraguay — A Paraguayan judge orders that impeached ex-president Santiago Pena be taken into custody over his alleged role in a banking crisis that left millions of depositors without access to their savings.

“The court has ordered pretrial detention,” the judge tells reporters after a hearing with Pena, who was charged with breach of trust and mismanaging funds for personal gain over the collapse of Ueno bank.

Pena maintained close relations with Israel, and in 2024, reopened his country’s embassy in Jerusalem, making it the sixth country at the time to make the move. Most other Israeli allies maintain an embassy in Tel Aviv, with many saying that the status of Jerusalem should be determined during a future two-state solution.

Times of Israel staff contributed to this report.