President Pena under house arrest over bank crisis

Key Points:

• Paraguay's Senate impeached President Santiago Pena over a banking crisis involving the collapse of digital lender Ueno, which left millions unable to access their deposits; Pena had resigned prior to the impeachment but was removed to strip him of immunity and a lifetime Senate seat.
• Vice President Pedro Alliana is set to succeed Pena and will serve the remainder of the presidential term until August 2028.
• The banking crisis centered on Ueno Bank, which served nearly 3 million customers and held substantial public-sector deposits, including pension funds; its collapse led to frozen accounts and halted banking services, sparking widespread protests.
• Prosecutors ordered the arrest of Pena and former central bank chief Carlos Carvallo, with Pena placed under house arrest pending further charges, while several bank executives were detained and charged with financial crimes.
• Pena faced allegations of conflicts of interest, misuse of pension funds, and improper interference related to Ueno, including loans he received from the bank and his appointment of Carvallo, who had ties to the bank and approved its conversion shortly after taking office.