Paraguay Senate Ousts President Santiago Peña Over Bank Scandal The Paraguayan Senate votes unanimously to remove President Santiago Peña following the collapse of Ueno Bank. Vice President Pedro Alliana assumes leadership amid widespread financial crisis and public outrage over frozen savings. The Senate of Paraguay has unanimously voted to remove President Santiago Peña from office following the catastrophic collapse of Ueno Bank, a financial institution that trapped the savings of nearly half the nation's six million citizens. The political upheaval concluded with Peña being placed under house arrest in Asunción on suspicion of breach of trust and influence peddling, marking the end of what was previously considered one of South America's most stable presidencies. Senate Removes President Santiago PeñaAll 44 senators present cast their votes to oust Peña for misconduct in office, making him only the second Paraguayan president to be removed by impeachment since the end of General Alfredo Stroessner's 35-year dictatorship in 1989. The removal came just days after regulators seized Ueno Bank, sending shock waves through the financial system and triggering the country's worst political crisis in more than a decade. As the verdict was delivered, crowds gathered in the plaza outside Congress roared in approval, waving flags and chanting slogans demanding an end to authoritarianism and demanding accountability for the economic disaster.House Arrest and Criminal Charges DetailPeña was ordered to remain at one of his residences in Asunción until he appears before prosecutors on Saturday morning to face charges of breach of trust, influence peddling, and using public office for personal gain. The most serious of these allegations carries a potential prison sentence of up to 10 years. Lawmakers accuse Peña of leveraging his political influence to direct hundreds of millions of dollars in public funds into Ueno while regulatory bodies overlooked risky insider lending practices. Police surrounded his home on Friday night as protesters vowed to maintain a vigil to prevent any escape attempts.Succession and Investigation ScopeVice President Pedro Alliana was sworn in as president to serve out the remainder of the term, which ends in August 2028. Alliana, who is also under investigation in connection with the bank, inherited a government under intense pressure to return depositors' money and punish those responsible for the collapse. Prosecutors have simultaneously ordered the arrest of Carlos Carvallo, who ran the finance company that became Ueno until Peña appointed him central bank chief in 2023. Additionally, prosecutors have charged 27 people, including former CEO Miguel Vázquez, with crimes such as attempted fraud, with several former directors held in pretrial detention or under electronic monitoring.Widespread Financial and Social ImpactThe fallout from the Ueno collapse has extended far beyond individual savers to destabilize key sectors of the economy. More than one million Paraguayans, including the national soccer team players sponsored by the bank, were locked out of their accounts, which had been aggressively marketed to the unbanked population with generous supermarket rebates. A ride-hailing app relying on Ueno shut down, leaving 3,000 drivers without work, while the state power company found $21 million in loans from the Inter-American Development Bank and Taiwan trapped within the failed institution.Market Reaction and Depositor CompensationFinancial markets have reacted violently to the political and economic instability, with Paraguay's bonds posting some of the worst losses in emerging markets and the guaraní sliding against the dollar. In an attempt to stabilize the situation, authorities began recovering small sums on Thursday for holders of up to 10 million guaraníes, approximately $1,500. The central bank states that deposits insured up to about $35,000 cover 97% of Ueno's customers and insists the broader financial system remains safe, labeling the collapse an isolated case despite the widespread public anger and calls for accountability.