Paraguay's president ousted over bank collapse, under house arrest

· Politics · Paraguay

Paraguay's Senate voted unanimously to impeach President Santiago Peña over the collapse of Ueno Bank, and he was placed under house arrest minutes later. Vice President Pedro Alliana was sworn in as president to serve out the remainder of Peña's term through August 2028. The bank's failure left nearly three million customers — about 60% of the country unable to access accounts — unable to reach their savings. Protesters took to the streets demanding answers. Peña denies wrongdoing, and prosecutors are still determining charges that could include influence peddling. Former president Horacio Cartes is seen as trying to claw back power amid the crisis.

Why it matters：A banking collapse has toppled a government and left most of a country cut off from its savings, a test case for financial stability in Latin America.

Key points

  • The Senate vote to impeach Peña was unanimous.
  • Ueno Bank served nearly half of Paraguay's population.
  • Pedro Alliana will serve through August 2028.

Sources (original reporting)

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