Paraguay's President Removed from Office After Bank Collapse

Paraguay's President Santiago Peña has been removed from office after a bank collapse left millions without access to their accounts.

A dramatic turn of events unfolded on Friday as lawmakers voted unanimously to impeach Peña, including some members of his own party, following the collapse of Ueno Bank earlier this week. The bank had ties to the president's private business interests, sparking concerns about potential conflicts of interest. Peña was arrested shortly after the vote.

In a surprising move, senators refused to accept the president's offer to resign on Thursday, opting instead for impeachment proceedings. This decision effectively strips Peña of the immunity usually granted to former presidents, making him vulnerable to prosecution. The charges against him include allegations of misconduct related to his business ties and involvement in regulatory oversight.

Peña has maintained that he is innocent, despite holding shares in the company that owned Ueno Bank until last year. He faces serious accusations, including manipulating regulatory oversight, diverting pension funds, and participating in an institutional cover-up involving the central bank.

The newly appointed interim president, Pedro Alliana, has vowed not to leave millions of Paraguayans affected by the bank scandal without support. He made this pledge after being sworn in as the temporary head of state following the impeachment of President Peña.

Alliana's promise of full compensation for those impacted by the financial collapse is a much-needed reassurance for the country's citizens. His commitment to helping those affected will be put to the test, given the scale of the crisis. The bank's demise has left over half of Paraguay's population without access to their savings.

Long queues have formed outside Ueno branches in Asunción as people try to withdraw their money. Estimated three million depositors remain unable to access their savings and pensions, sparking widespread public outrage. Protests have erupted across the country, with thousands taking to the streets on Thursday to demand their money back.

The Paraguayan Senate has voted to impeach President Santiago Peña, with 44 out of 45 senators in favour of his removal from office.

Peña's decision to step down was announced through a video message on social media platform X, where he expressed regret over the collapse of the bank and reiterated his commitment to restoring public trust. He stated that his top priority is ensuring the peace of mind of Paraguayans whose savings were affected by the financial crisis.

The Senate's president, Basilio Núñez, has confirmed that Peña was found guilty of dereliction of duty in connection with the bank's collapse. Analysts predict that the former President will now face prosecution for his alleged role in the scandal, which has been described as a "tremendous blow" to the country's credibility and image by Senator Rafael Filizzola.