Paraguay's President Impeached and Arrested Over Bank Collapse

President Santiago Peña was arrested on Friday shortly after lawmakers, including members from his own party, voted to remove him from office. The decision followed a financial crisis triggered by the collapse of Ueno Bank earlier in the week.

Peña had previously offered to resign on Thursday, but lawmakers opted to impeach him and charge him with misconduct rather than accept his resignation. This action resulted in the loss of his lifetime Senate seat and the immunity granted to former presidents.

Peña, who had previously held shares in the company that owned Ueno Bank, has denied any wrongdoing. The bank's collapse has left more than half of Paraguay's population without access to their savings after it was seized by the central bank.

Approximately three million depositors remain unable to access their savings and pensions, leading to widespread protests, particularly in the capital, Asunción. Impeachment charges allege that Peña had conflicts of interest, manipulated regulatory oversight, diverted pension funds, and participated in an institutional cover-up involving the central bank.

Peña is set to be questioned on Saturday regarding allegations of breach of trust, influence peddling, and misappropriation of funds. Prosecutor Silvia Margarita Gonzalez Vester announced the charges. The impeachment passed with 44 out of 45 senators voting in favor, with one lawmaker absent.

Alliana, who will serve as president until 2028, stated that those affected by the financial collapse will be fully compensated. Senator Rafael Filizzola described the situation as the biggest corruption scandal in Paraguay's democratic history, calling it a significant blow to the state, citizens, and the country's credibility.