Paraguay Senate Ousts President Santiago Peña After Ueno Bank Collapse

Paraguay’s Senate ousted President Santiago Peña and prosecutors placed him under house arrest after a bank collapse tied to his government froze savings for millions of people. Vice President Pedro Alliana was sworn in as leader, while protesters in Asunción demanded their money back and accountability for the crisis.

Paraguayan President Santiago Pena asked for a 72-hour delay to prepare his defense against impeachment over the collapse of Ueno Bank, which led the central bank to freeze accounts of about three million customers. The scandal has sparked protests, resignation of the central bank chief, and investigations into Pena’s past ties to the bank’s owner.

Paraguay’s central bank intervened in Ueno Bank after its solvency fell below required levels, freezing access to deposits for nearly three million customers and disrupting payments across the country. The collapse has triggered public protests, arrests of senior executives, and mounting political pressure on President Santiago Peña, including calls for impeachment and investigations into public funds tied to the bank.