Paraguay president under house arrest amid banking crisis affecting 60% of population

Paraguay's president, Santiago Peña, was placed under house arrest minutes after being impeached by Congress, according to The Guardian. This action follows a severe banking crisis involving the suspension of Ueno bank, which has left over 60% of the population unable to access their accounts.

The crisis centers on Ueno, a rapidly expanding digital lender whose collapse has triggered widespread financial disruption, as reported by Al Jazeera. The bank's suspension was due to irregularities, prompting investigations into allegations that Peña used his political influence to favor the institution during its growth.

Congress has rejected Peña's resignation and is proceeding with impeachment, accusing him of negligence and complicity in covering up Ueno's insolvency. The political turmoil reflects broader concerns about state influence and accountability in Paraguay's financial sector.

Experts cited by Al Jazeera highlight questions regarding regulatory oversight and political interference that may have contributed to the crisis. The situation continues to evolve as investigations and political proceedings move forward.