Paraguayan president impeached and placed under house arrest after bank collapse

Paraguayan President Santiago Peña was impeached by the Senate and placed under house arrest after a state-affiliated bank collapsed, according to reports from knau.org and wrkf.org. The bank, Ueno Bank, was a digital lender serving about 3 million customers, more than half of Paraguay's adult population.

Peña was a shareholder in Ueno Bank and known as a pro-market leader focused on easing business operations in the country. However, legislators accused him of jeopardizing state assets and benefiting personally through his connection to the bank. The central bank seized control of Ueno Bank after its solvency ratio fell below legal standards.

Despite Peña's announcement of resignation, lawmakers rejected it and proceeded with impeachment. The Senate unanimously found Peña guilty of malfeasance in office. Prosecutors charged him with breach of trust and other offenses before placing him under house arrest. Peña appeared before prosecutors the following day and apologized to the Paraguayan people.

Vice President Pedro Alliana was sworn in to complete Peña's term until August 2028. Alliana pledged to take action to compensate those who lost money in the bank's collapse. This is the first presidential ousting in Paraguay since Fernando Lugo in 2012.