Paraguay's president impeached and under house arrest

A severe political crisis unfolded in Paraguay on Friday after President Santiago Peña was officially removed from office and placed under house arrest. The dramatic downfall followed the sudden collapse of Ueno Bank, an institution linked to his private business interests, which threw the nation's financial sector into deep turmoil and left citizens stranded without their funds.

The trouble began when the digital bank was seized by the central bank of Paraguay, abruptly blocking more than half of the country's population from accessing their personal savings and pensions. Throughout Tuesday and Wednesday, lengthy queues of anxious depositors trying desperately to withdraw their money snaked through the streets of the capital city, Asunción.

Ahead of the senate vote, Peña had attempted to resign from his post on Thursday. However, lawmakers rejected his resignation and instead pursued formal impeachment proceedings, charging him with severe misconduct and stripping away the legal immunity traditionally afforded to former heads of state.

The formal charges against Peña cite glaring conflicts of interest, deliberate manipulation of regulatory oversight, diversion of pension funds, and participation in an institutional cover-up alongside the central bank. Prosecutor Silvia Margarita Gonzalez Vester stated that Peña is scheduled for formal questioning regarding allegations of breach of trust, influence peddling, and misappropriation of public funds.

Stock photo for illustration only, not from the actual event

The unfolding disaster triggered massive public outrage, culminating in widespread street protests across the country on Thursday as thousands demanded the return of their money. Demonstrations in several areas escalated into tense clashes with police forces, who deployed tear gas and water cannons to disperse the angry crowds.