Paraguay's president under house arrested after bank collapse
Also reported by France24, BBC Top Stories
Summary
Paraguay’s Senate voted to remove President Santiago Peña over alleged misconduct after regulators seized Ueno Bank, leaving customers unable to access their accounts. Peña was placed under house arrest pending a court appearance on charges he denies, while the bank’s collapse has disrupted businesses and shaken markets.Key Facts
- The Senate voted to impeach Peña, making him the second Paraguayan president removed since the end of Alfredo Stroessner’s dictatorship in 1989.
- Regulators seized Ueno Bank three days before the Senate vote.
- Lawmakers accuse Peña of directing public funds to Ueno and allowing risky insider lending; Peña denies wrongdoing.
- Prosecutors are investigating Peña for breach of trust, influence peddling, and using public office for personal gain.
- More than 1 million Paraguayans reportedly opened their first bank account at Ueno, whose customers lost access to withdrawals, savings, and card payments after the seizure.
- The bank’s collapse shut down a ride-hailing app, leaving 3,000 drivers without work, and trapped $21 million in loans for public works.
- Some depositors began recovering funds on Thursday; deposits are insured up to about $35,000, which the central bank says covers 97% of Ueno customers.
- Paraguay’s bonds fell sharply and the guaraní weakened against the dollar amid the crisis.
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