Paraguay's Peña resigns and is arrested over bank collapse

· Politics · Paraguay

Paraguay's Senate removed President Santiago Peña from office on Friday and he was arrested, hours after he submitted his resignation over the collapse of Ueno Bank. Lawmakers had launched an extraordinary session and impeachment proceedings, with Congress initially putting his resignation on hold. The bank failure has affected millions of customers, put public money at risk and sparked protests in which thousands took to the streets. Peña's downfall paves the way for potential criminal charges over his alleged role in the bank's collapse. Taiwan said its ties with Paraguay remain unaffected.

Why it matters：The ouster of a sitting president over a banking failure is a rare democratic rupture that raises questions about accountability and state influence over finance in the region.

Key points

  • Peña resigned before the Senate removed him and he was arrested.
  • Ueno Bank's collapse affected millions of customers.
  • Thousands protested in recent days.

Sources (original reporting)

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