Paraguay ex-President impeached over banking crisis, placed under house arrest
What's the story
Santiago Pena, the former president of Paraguay, has been placed under house arrest after being impeached by Congress. The impeachment was triggered by a banking crisis that left around 2.9 million people without access to their accounts. Pena is accused of using his political influence to benefit Ueno Bank, which expanded rapidly during his tenure and was suspended this week due to irregularities.
Public unrest
Protests erupt across Paraguay over banking crisis
The suspension of Ueno Bank has frozen the accounts of 2.9 million people, about 60% of the country's adult population, sparking widespread protests across Paraguay.
Some demonstrations turned violent, leading to clashes with police forces.
The impeachment proceedings against Pena started on Wednesday and concluded on Friday, shortly before his arrest was ordered.
Leadership transition
Pedro Alliana sworn in as new president
Pedro Alliana has been sworn in as the new president of Paraguay following Pena's impeachment.
A public prosecutor, accompanied by police outside Pena's home, confirmed that he is under house arrest.
The prosecutor's office launched an investigation into Pena on Thursday for alleged illicit enrichment, money laundering, and influence peddling.
Legal maneuvering
Pena tried to resign on Thursday
Pena had tried to resign on Thursday in a bid to keep the special jurisdiction given to former presidents. However, lawmakers rejected his resignation, making him subject to ordinary courts.
Amid speculation that he had fled to Argentina, Pena was expected to defend himself during impeachment proceedings but chose to let his lawyers handle it instead.
Bank growth
Ueno Bank became 1 of Paraguay's largest banks
Ueno Bank became one of Paraguay's largest banks by deposits in just a few years after becoming a digital bank.
Pena appointed Carlos Carvallo Spalding, a former CEO of Ueno, as head of the central bank soon after taking office.
Despite his presidency, Pena only sold his shares in Ueno Holding in April 2025, claiming he bought them purely as an "investor."