Paraguay's president impeached after collapse of bank

Paraguay's president, Santiago Peña, was ousted from office and placed under house arrest on Friday, November 6, following a unanimous Senate vote. The impeachment came in response to questions surrounding his past connections to the now-collapsed digital bank, ueno, which served nearly half of Paraguay's population. Peña had previously offered his resignation but lawmakers opted to continue the impeachment process.

Pedro Alliana was sworn in as the new president just as Peña was arrested. Prosecutors are investigating potential charges including influence peddling, while Peña was ordered to appear at the prosecutor's office on Saturday. Peña has denied any wrongdoing, claiming the situation is a regulatory issue. The political crisis began when Paraguay's central bank intervened in ueno, raising concerns over the bank's lending practices and ties to the political and financial elite, including Peña and the central bank chief Carlos Carvallo.

Peña was a shareholder in ueno's holding company until last year. The situation has led to protests in Asunción, with demonstrators demanding accountability and faster compensation for affected depositors.