Paraguay’s impeached president held under house arrest as bank collapse freezes millions’ funds

Paraguay’s Congress impeached President Santiago Peña, who was then placed under house arrest as prosecutors investigate alleged corruption linked to the collapse of Ueno Bank. The crisis has left millions unable to access their money and fuelled protests, while Vice-President Pedro Alliana was sworn in as the new leader.

Ueno’s suspension froze accounts belonging to 2.9 million people, about 60% of Paraguay’s adult population, and retail sales reportedly fell by as much as 80%. Investigators are examining allegations of illicit enrichment, money laundering and influence peddling, including Peña’s past shareholding in Ueno’s parent company and the appointment of a former Ueno chief executive to lead the central bank. An estimated $800m to $860m in state and pension funds had been invested in Ueno.