Paraguay’s President Pena impeached over Ueno banking crisis, placed under house arrest

Paraguayan President Santiago Pena was removed from office and placed under house arrest on Friday due to allegations of breach of trust, following the Senate's impeachment proceedings over the collapse of Ueno Bank. Pena had offered his resignation but lawmakers proceeded with impeachment, stripping him of presidential immunity.

Senate President Basilio Nunez declared Pena "guilty of poor performance in his duties" after a vote of 44 in favor and one absence out of 45 senators. Nearly three million individuals have been unable to access their funds since the Central Bank took control of Ueno Bank on Tuesday and froze its accounts due to solvency concerns.

Some advance payments to affected depositors began on Thursday afternoon. The bank's failure led to protests demanding repercussions for Pena, who had previously had ties to Grupo Vazquez, the entity controlling Ueno. Pena apologized during a televised address, stating, "It was never my intention to betray the trust you placed in me."

Thousands protested in Asuncion and other cities, demanding the return of their money. The scandal has led to the appointment of Vice-President Pedro Alliana to lead the country until 2028, and prosecutors have raided ITTI, a subsidiary of Grupo Vazquez, gathering evidence for the investigation.