Paraguay's ousted president faces arrest over bank collapse

Paraguay's former president Santiago Peña was ousted by Congress following the collapse of Ueno Bank, which froze access to nearly 3 million customers' savings, PBS NewsHour reported.

Paraguayan prosecutors ordered the arrest of Peña and former Central Bank chief Carlos Carvallo as part of a criminal probe into alleged breach of trust and other offenses related to the bank's failure.

Peña was taken to the attorney general's office for questioning and later transferred to a military base amid protests outside his home, according to PBS NewsHour.

The Central Bank of Paraguay stated it was working to compensate approximately 1.2 million Ueno Bank customers who had insured deposits, providing partial or full reimbursement under national law.

Lawmakers accused Peña of improperly using his political influence to direct public funds into Ueno Bank while regulators ignored risky insider lending, allegations Peña denies.

Following Peña's removal, Vice President Pedro Alliana assumed the presidency and began appointing a new Cabinet to address the crisis.