Paraguay bank collapse sees president impeached, arrested

Paraguay's former President Santiago Pena was impeached and removed from office following a banking crisis that crippled almost half the country's financial system. The impeachment, approved by a 44-1 vote by the Senate, accused Pena of poor governance during his tenure, particularly concerning the collapse of Uneo Bank, a company he had ties with. Senate President Basilio Nunez declared Pena guilty after one senator was absent.

Jessica Aquino, a protester, expressed relief and anger, stating, "Now we want him to give us back our money and go to jail." Pena was placed under house arrest by authorities shortly after his removal. The new President, Pedro Alliana, vowed to compensate the nearly three million depositors, including pensioners, affected by the bank's insolvency.

Alliana, who will serve until 2028, promised to address the financial concerns of the affected citizens. However, opposition politicians had also filed a motion to impeach Alliana over the crisis, which was unsuccessful. The bank's collapse sparked protests, revealing a deep distrust of the US-backed government, which had a stake in Grupo Vazquez, the entity that controlled Ueno Bank.

The Paraguayan government has initiated legal proceedings against Pena for breach of trust, influence peddling, and misappropriation of funds. The Attorney General's office is set to question him on Saturday. Pena, in a final message before his removal, called for unity among Paraguayans to rebuild the country's institutions and regain trust. The US Embassy in Paraguay expressed solidarity with the people of the country without directly addressing Pena's impeachment.