Paraguay’s President Santiago Peña impeached and arrested

Paraguay’s Senate impeached President Santiago Peña and he was placed under house arrest following the collapse of Ueno Bank, which had links to his former business interests. The crisis has left millions unable to access their savings and pensions, fuelling protests and raising serious questions about the handling of the bank’s failure.

The impeachment passed by 44 votes to none, with one senator absent; lawmakers accused Peña of conflicts of interest, interference in regulatory oversight and misuse of pension funds, which he denies. Vice-President Pedro Alliana was sworn in as interim president until 2028 and promised affected customers would be compensated. Peña is due to be questioned over alleged breach of trust, influence peddling and misappropriation of funds.