Paraguay’s president impeached and under house arrest after bank collapse

Paraguayan President Santiago Peña has been removed from office and placed under house arrest following the collapse of Ueno Bank, leaving over half of the nation's population without access to their accounts. The impeachment occurred after lawmakers from his own party voted unanimously to remove him, rejecting his resignation offer.

Peña denied any wrongdoing, despite allegations of conflicts of interest, regulatory manipulation, misuse of pension funds, and a cover-up by the central bank. He is set to answer charges of breach of trust, influence peddling, and fund misappropriation. Deputy Pedro Alliana was sworn in as the interim president, vowing to compensate the affected millions.

The digital bank's failure has had a profound impact, with over three million depositors still unable to retrieve their savings and pensions. Protests erupted nationwide, with clashes between demonstrators and police. Peña's impeachment was passed by 44 out of 45 senators, citing his alleged dereliction of duty. Analysts predict Peña will face prosecution for the bank's collapse, with his defense lawyer dismissing the accusations as reckless and opportunistic.