Paraguay President Santiago Peña Ousted & Placed Under House Arrest After Ueno Bank Collapse; Vice President Sworn In As Successor

Asuncion, Paraguay - President Santiago Peña was removed from office and placed under house arrest on Friday, following the collapse of Ueno Bank, a major financial institution tied to his administration. The Senate unanimously voted to remove Peña for misconduct in office, ending one of South America's most stable presidencies. Peña resigned as President, citing his concern for the country's stability, social peace, and democratic institutions.

The central bank seized Ueno Bank on November 3, leaving nearly three million customers without access to their savings and bank cards. This event sparked a political crisis, leading to the arrest of Peña under suspicion of breach of trust, ordered by prosecutors. Additionally, the arrest of the former central bank chief, Carlos Carvallo, who was appointed by Peña, is being investigated.

Prosecutors accused Peña of misusing public funds by steering hundreds of millions of dollars into Ueno Bank while regulators overlooked risky lending practices. Peña denied any wrongdoing. Vice President Pedro Alliana was sworn in as president to serve out the remaining term, which ends in August 2028.

Alliana, a member of the conservative Colorado party, is currently under investigation by prosecutors. Despite opposition members attempting to impeach him, the scandal has also reached central bank and pension fund officials. Thousands of protesters have taken to the streets, demanding the return of their frozen savings and accountability for Ueno Bank's failure. The political crisis has escalated, with Paraguay experiencing its deepest political turmoil in over a decade.