Paraguayan President Santiago Peña was impeached and placed under house arrest on Friday, following the collapse of Ueno Bank, a digital lender with ties to the government. The bank's collapse has left millions without access to their money. Peña, a pro-market leader and close ally of Washington, was a shareholder in Ueno Bank, which served over 3 million customers, more than half of Paraguay's adult population.
Peña's impeachment comes after legislators accused him of jeopardizing state assets and benefiting himself through his connection to Ueno Bank. The bank had offered generous cash back offers on groceries, attracting over a million new customers. A trial has proceeded against Peña, who appeared before prosecutors on Saturday morning. Peña has denied any wrongdoing but announced his resignation on Thursday, which lawmakers refused to accept.
The impeachment process moved forward on Friday, with legislators unanimously finding Peña guilty of malfeasance in office. Prosecutors then accused him of a breach of trust, among other charges, before placing him under house arrest. Peña apologized to the Paraguayan people in a speech posted to social media, saying, "I want to apologize to the Paraguayan people if I have failed you."
Pedro Alliana, the country's vice president, was sworn in as president to serve out the rest of Peña's term until August 2028. In a speech on Friday, Alliana announced plans to compensate people whose money was lost in the bank's collapse. The country's central bank seized control of Ueno Bank on Tuesday, citing a solvency ratio that no longer met legal standards.
Protests erupted across Asunción, the country's capital city, following the seizure of Ueno Bank. The bank had previously reported that over a million people had opened bank accounts for the first time using its services. Peña was known for his pro-market policies and efforts to make it easier to do business in Paraguay.
The last president ousted from office was Fernando Lugo in 2012. Peña's impeachment and house arrest mark a significant development in Paraguayan politics. The country's lawmakers have taken swift action to address the fallout from the bank's collapse, which has had a major impact on the country's economy and citizens.
The impeachment of President Peña has raised questions about the country's governance and financial regulations. As the country moves forward, it remains to be seen how the new administration will address the challenges posed by the bank's collapse and restore trust in the financial system.
Key points
- Paraguayan President Santiago Peña impeached and placed under house arrest amid Ueno Bank collapse
- Peña's impeachment follows accusations of malfeasance in office and breach of trust
- Pedro Alliana sworn in as president to serve out the rest of Peña's term until August 2028
